Amazon makes a direct offer to Hachette authors: 100% ebook royalties

[SteveEisenberg]

We also wonder what this letter would look like if Hachette had posed this idea and Amazon had rejected it.

Wow. What a clever idea, Amazon, to insult the integrity of a writer who brings you thousands of sales.

There is no way Hachette would "pose this idea" because it would hurt them financially much more than Amazon. Some of the publishing industry English major types may be a little slower to add up a column of numbers than the Carnegie Mellon computer science grads at Amazon, but they do figure it out. See:

The New Amazon Offer to Hachette

Full disclosure is that Richard Russo has long been my favorite living novelist.

[tubemonkey]

It may be true that some of our publishers are owned by corporations that, like Amazon, sell a lot more than books, but those larger corporations seem to understand that books are special, indeed integral to the culture in a way that garden tools and diapers and flat-screen TVs are not. To our knowledge, Amazon has never clearly and unequivocally stated (as traditional publishers have) that books are different and special, that they can’t be treated like the other commodities they sell. This doesn’t strike us as an oversight. If we’re wrong, Mr. Bezos, now would be a good time to correct us. First say it, then act like you believe it. We’d love to be your partners.

Good grief! The fact is, books aren't different and special. They're either a series of facts or another form of entertainment. A book = a movie = a song = a photo = a painting = a sculpture = a garden hoe = a walk in the park = a romp with the dog = playtime with the kids = etc. You need to get over yourself and place books in actual perspective.

[TCSimpson]

Originally Posted by SteveEisenberg

Wow. What a clever idea, Amazon, to insult the integrity of a writer who brings you thousands of sales.

There is no way Hachette would "pose this idea" because it would hurt them financially much more than Amazon. Some of the publishing industry English major types may be a little slower to add up a column of numbers than the Carnegie Mellon computer science grads at Amazon, but they do figure it out. See:

The New Amazon Offer to Hachette

Full disclosure is that Richard Russo has long been my favorite living novelist.

I don't get the insult. Seems they're saying in a hypothetical world, if roles were reversed, that there would be a massive uproar against Amazon for rejecting the proposal. And they're right. But it's Amazon, the monopoly that isn't a monopoly that people love to bash.

[eschwartz]

Originally Posted by SteveEisenberg

Wow. What a clever idea, Amazon, to insult the integrity of a writer who brings you thousands of sales.

There is no way Hachette would "pose this idea" because it would hurt them financially much more than Amazon. Some of the publishing industry English major types may be a little slower to add up a column of numbers than the Carnegie Mellon computer science grads at Amazon, but they do figure it out. See:

The New Amazon Offer to Hachette

Full disclosure is that Richard Russo has long been my favorite living novelist.

Amazon may not be insulting Richard Russo's integrity, but I am.

As a result of Richard Russo writing this clearly self-centered rant (focused on his own better-than-average relationship with his publisher), he has shown himself to have no integrity.

Also, he is insulting the integrity of the company that has brought him thousands of sales.

[Top100EbooksRank]

http://www.thepassivevoice.com/07/20...ds-of-silence/

What does the timeline tell us?

1. Hachette did not negotiate in good faith before the end of the contract.

They didn’t negotiate at all. Amazon and Hachette agree on this crucial point. The first Hachette offer was in April. Amazon says the original contract ran out in March and Hachette hasn’t denied it. In my view, the party that makes no attempt to negotiate during the term of the original contract is the instigator of the stand-off.

2. Hachette knew for months that their authors were being harmed and they did nothing.

Sullivan noticed that the usual Amazon discounts on his titles were gone on February 7. He saw the inventory issues on March 9. He let Hachette know about both issues. At that point Hachette had let their contract expire without so much as a counter-offer.

. . . .

4. Hachette was able to pull off a complex, multi-million dollar acquisition of a smaller publisher, but unwilling to fund either of Amazon’s offers to help the affected authors.

The publishing half of Perseus was estimated to have revenues in the $100 million range. That’s a pretty big deal in the publishing world.

5. Since the dispute became public, Hachette has essentially abandoned the negotiations in favor of a concerted public relations campaign.

Hachette’s last offer was in May around the time the affair became public. Amazon sent them another offer on June 5. Hachette has orchestrated a high-profile publicity campaign with big name authors, a popular TV host, and the publishing industry press taking up Hachette’s cause. Hachette has even enlisted the New York Times to play stenographer for them.

6. Hachette has a powerful incentive to drag this out.

To achieve its goal, Hachette needs to delay the final agreement until late 2014 or early 2015. That is the earliest time they will be able to conclude an agreement with Amazon that restricts Amazon’s ability to discount ebooks. Moreover, developments in Apple’s ongoing appeal could substantially impact Hachette’s negotiating position. An Apple loss or settlement would make reaching an agency deal (with no discounting) almost impossible because Amazon is not going to agree to let Apple underprice them on ebooks.

[Barcey]

Originally Posted by SteveEisenberg

Wow. What a clever idea, Amazon, to insult the integrity of a writer who brings you thousands of sales.

There is no way Hachette would "pose this idea" because it would hurt them financially much more than Amazon. Some of the publishing industry English major types may be a little slower to add up a column of numbers than the Carnegie Mellon computer science grads at Amazon, but they do figure it out. See:

The New Amazon Offer to Hachette

Full disclosure is that Richard Russo has long been my favorite living novelist.

I've been impressed with Amazon's communications. They've been professional and well planned out. They haven't been dragged down to the mud slinging that has been thrown at them. They obviously have a great communication team.

Ironically all the hyperbole and personal attacks has been coming from the authors that have taken up the call to quills on both sides.

[SteveEisenberg]

Originally Posted by tubemonkey

Good grief! The fact is, books aren't different and special. They're either a series of facts or another form of entertainment. A book = a movie = a song = a photo = a painting = a sculpture = a garden hoe . . . .

I'm torn on how to respond to this.

Three mutually exclusive possibilities are:

-- Most, maybe all, fiction, you are correct about. But not other books. Here are two quite different recent Hachette titles that I think make for a more informed citizentry (even though I've only read the first):

http://www.hachettebookgroup.com/tit...9780316219280/

http://www.hachettebookgroup.com/tit...9781478983705/



-- No, reading is better than other forms of entertainment. Children who grow up as readers get better jobs, and reading in adulthood exercises the brain and prevents its deterioration:

http://books.google.com/books?id=NlY...0brain&f=false

http://abcnews.go.com/Health/story?id=117588


-- You are correct. Big publisher books are like first rate gardening tools. Companies that make good ones should resist Amazon/WalMart pressure to lower their wholesale prices and, inevitably, the quality of their product.

Originally Posted by Top100EbooksRank

To achieve its goal, Hachette needs to delay the final agreement until late 2014 or early 2015. That is the earliest time they will be able to conclude an agreement with Amazon that restricts Amazon’s ability to discount ebooks.

What did you think of tubemonkey's garden weeding tool idea?

It tubemonkey is right, Hachette is right to do what it needs to do to preserve gardening tool quality.

If tubemonkey is wrong, I guess it's more problematic. But I still can't see why you complained, earlier in #80, about Hachette not bargaining in good faith. Hachette doesn't bargain with neighborhood bookstores. Do they bargain with the High Street chains in Britian? Do they bargain with every eBook web site in France? In Poland? In India? Why should Hachette bargain at all?

[ApK]

[d'oh! disregard. I had thought Amazon delisted all Hachette ebooks. Didn't realize it was just certain less popular ones....]

[ApK]

Originally Posted by SteveEisenberg

-- You are correct. Big publisher books are like first rate hoes.

I agree, but I'm not thinking that last word refers to a garden tool.

[shalym]

Originally Posted by SteveEisenberg

I'm torn on how to respond to this.

Three mutually exclusive possibilities are:

-- Most, maybe all, fiction, you are correct about. But not other books. Here are two quite different recent Hachette titles that I think make for a more informed citizentry (even though I've only read the first):

http://www.hachettebookgroup.com/tit...9780316219280/

http://www.hachettebookgroup.com/tit...9781478983705/

That's your opinion. In my opinion, fiction is more important and plays a larger role in my life than non-fiction. I've actually learned more hard science and history from fiction stories than I have from reading non-fiction books. I do read (and love) biographies and history in general, but most non-fiction books of that type are interchangeable. They really are commodities.

-- No, reading is better than other forms of entertainment. Children who grow up as readers get better jobs, and reading in adulthood exercises the brain and prevents its deterioration:

http://books.google.com/books?id=NlY...0brain&f=false

http://abcnews.go.com/Health/story?id=117588

I'm not going to argue with this, I am going to say, however, that neither of those studies states that reading non-fiction is more important than reading, say, a romance novel, or manga.

-- You are correct. Big publisher books are like first rate gardening tools. Companies that make good ones should resist Amazon/WalMart pressure to lower their wholesale prices and, inevitably, the quality of their product.

What did you think of tubemonkey's garden weeding tool idea?

It tubemonkey is right, Hachette is right to do what it needs to do to preserve gardening tool quality.

If tubemonkey is wrong, I guess it's more problematic. But I still can't see why you complained, earlier in #80, about Hachette not bargaining in good faith. Hachette doesn't bargain with neighborhood bookstores. Do they bargain with the High Street chains in Britian? Do they bargain with every eBook web site in France? In Poland? In India? Why should Hachette bargain at all?

Hachette doesn't bargain at all with neighborhood bookstores--bookstores buy books at a wholesale rate, and are allowed to sell the books at whatever price they want to sell them at.

Shari

[SteveEisenberg]

Originally Posted by shalym

That's your opinion. In my opinion, fiction is more important and plays a larger role in my life than non-fiction.

Just to clarify, if that's possible, it isn't exactly my opinion. It's one of three opinions I can't choose between; the other two opinions don't distinguish between fiction and nonfiction.

Originally Posted by shalym

I do read (and love) biographies and history in general, but most non-fiction books of that type are interchangeable. They really are commodities.

This mystifies me, but that's OK.

Originally Posted by shalym

Hachette doesn't bargain at all with neighborhood bookstores--bookstores buy books at a wholesale rate, and are allowed to sell the books at whatever price they want to sell them at.

For neighborhood book stores in the United States, you are totally correct. Outside the US, it varies whether there is retail price maintenance, but you are correct that bookstores buy at a wholesale price, either direct from the publisher, or from a wholesaler.

In the United States, retailers can indeed charge whatever they want. However, many manufacturers won't continue selling to said retailer if their price maintenance policy is violated. That why Amazon can no longer market most Apple products, or Wüsthof knives, except through third party sellers. Big publishers may have to make a decision as to whether they want to join Apple and Wüsthof.

Amazon demands special treatment from Hachette not given to neighborhood bookstores, and not given to most of the dozens or hundreds of web sites around the world that sell ePUB eBooks. It's Amazon's right to demand special treatment, as is Hachette's to resist, and as is mine to hope Hachette comes out on top.

[eschwartz]

Amazon wants concessions from Hachette in return for extra rights that Hachette wants. I'm sure Amazon would be fine with renewing the old agreement as well.

Hachette isn't demanding anything new from bookstores that bookstores should want anything new from them.

[AnemicOak]

Originally Posted by SteveEisenberg

However, many manufacturers won't continue selling to said retailer if their price maintenance policy is violated. That why Amazon can no longer market most Apple products, or Wüsthof knives, except through third party sellers. Big publishers may have to make a decision as to whether they want to join Apple and Wüsthof.

The big difference being that the big publishers encourage retailers like Amazon, Target, Wal-Mart, Costco, etc. to heavily discount. Apple & Wüsthof don't & I don't think ever did.