Latest Authors United letter to Amazon Board

[Barcey]

I've been thinking about the statement:

These sanctions have driven down Hachette authors' sales at Amazon.com by at least 50 percent and in some cases as much as 90 percent.

If Amazon's sales represent roughly 60% of the market that means the "sanctions" represent roughly 30 - 54% of the gross revenue.

If I break down the "sanctions" they are all services or value add that Amazon is providing.

1) Discounts (presumably out of Amazon's percentage of the revenue)

2) Fast shipping on physical books. (Amazon isn't stocking physical inventory of many Hachette books so isn't committing to 2-3 day delivery)

3) Preorders (Leverage Amazon's customer base)

4) Recommendation engine. (Allegation of lower rankings and recommending other books)

I don't consider removing any of these services as sanctions but Authors United has done a good job of giving Amazon ammunition that they should be getting more then 30%. I know that Authors United don't want to sully their hands and minds with the financial aspect of selling their consumer goods but it boggles my mind that they can't see this. Somebody that managed their money for them needs to sit them down and explain the facts of life. They should be asking Hachette some tough questions about the percentage they are taking relative to the value add.

[SteveEisenberg]

Originally Posted by DaveCanRead

Looking at the price of the new Kindle Voyage, Amazon seems to be using Hachette's pricing model.

Up until the Fire came out, Amazon's Kindle strategy was similar to Hachette's. Start out with a high product price, and lower it over the next couple years.

But, after September 2011, eInk Kindle price declines abruptly stopped. This could mean they have taken the contrary strategy of milking existing businesses, like eInk readers, to cover the likely losses in Amazon Web Services and video production.

[DuckieTigger]

Unless ...

It may be exactly the true intention to give Amazon amunition and strong arguments. The authors may have given up the right to negotiate, but they still have the right to express their opinion. By ridiculing Hachette's demands, they are not trying for Amazon to make a move, but Hachette.

Robinsons says she is not a special snowflake, the letter says different. So it is up to Hachette to stop treating the authors as special snowflake and start negotiating with the books as consumer products they are.

The letter could not have been done any better - without saying so directly they disagree how Hachette treats them and Amazon.

Well wishful thinking on my part, they are probably so special as to mean everything the letter said.

[eschwartz]

Originally Posted by SteveEisenberg

Up until the Fire came out, Amazon's Kindle strategy was similar to Hachette's. Start out with a high product price, and lower it over the next couple years.

But, after September 2011, eInk Kindle price declines abruptly stopped. This could mean they have taken the contrary strategy of milking existing businesses, like eInk readers, to cover the likely losses in Amazon Web Services and video production.

Investment != loss.

But then again, you have already had this pointed out to you, I don't know why I waste my time.

[dickloraine]

Originally Posted by SteveEisenberg

Up until the Fire came out, Amazon's Kindle strategy was similar to Hachette's. Start out with a high product price, and lower it over the next couple years.

But, after September 2011, eInk Kindle price declines abruptly stopped. This could mean they have taken the contrary strategy of milking existing businesses, like eInk readers, to cover the likely losses in Amazon Web Services and video production.

Isn't it a bit to simple, to look at prices just like this? There are many factors to finding the right price. I don't have any particular knowledge about that, but to me there seems to be a difference between:
1) Naturally falling prices because of the age of a product. And in the tech market this is very obvious: Older models are not produced anymore but still in stock. The new model is normally priced equally to the last model. So nobody would buy the old model, if it still costs the same. But of course demand also sinks on other products, even books. Who really cares today about a bestseller 10 years ago?

2) The initial price of a product. This is much more difficult and what the debate is about. Amazon claims, that a lower price would make a bigger profit, the publishers either don't believe this or trying to protect the perceived value of there product or like to guard their paper business.

Specific to the Kindle: All three models are in production. With the paperwhite there is a reader that is competitive priced to most other lighted readers. The basic kindle is pretty cheap and the new voyager is positioned as a premium device. There seems to be nothing mystic to the price policy of amazon, every kindle model is priced for its niche.

[Nate the great]

Originally Posted by SteveEisenberg

Up until the Fire came out, Amazon's Kindle strategy was similar to Hachette's. Start out with a high product price, and lower it over the next couple years.

But, after September 2011, eInk Kindle price declines abruptly stopped. This could mean they have taken the contrary strategy of milking existing businesses, like eInk readers, to cover the likely losses in Amazon Web Services and video production.

This started in mid-2010, actually.

[fjtorres]

Originally Posted by Nate the great

This started in mid-2010, actually.

June 2010...

And it was Nook that forced the move to near-cost pricing. Amazon was running hardware and software as separate profit centers before the four hour price war. They've never been terribly aggressive on hardware. Just enough to undercut their primary competitors.

[fjtorres]

Well, one thing the catfight is doing is generating new buzzwords and catch phrases:

http://jakonrath.blogspot.com/2014/0...name-game.html

Authors United and their allies (I'm looking at you, NYT publishing apologist pinhead David Steitfeld) are not only failing to get their buzzwords accepted by the public, they're introducing derogatory terms that are eventually going to be adopted the same way "legacy publishing" has been.

"Whale math", which is attributed to Streitfeld in one of the most hilariously inept analogies in modern journalism, is a term coined to describe a ridiculous comparison in order to bolster one number while downplaying another. To quote Hugh Howey:

"the opinion of 900 authors is worth a fawning article (complete with Douglas Preston hanging out by his writing shack on his 300 acre summer estate), while the opinion of 8,000+ authors is meaningless . . . because far more people care about saving whales."

"Special snowflake" has been applied to Authors United because of their insistence that books, and authors, must have different rules applied to them because this is Important Art and Culture. Writers aren't assembly workers, they're better than that. Books aren't disposable razor blades, they're better than that. Elitist, self-important bullshit. Authors Guild President Roxana Robinson insisted she isn't a special snowflake. I agree, Roxana. You aren't special at all. So stop asking for special treatment.

"Typocrite" is someone in the publishing industry (someone who should know the value and meaning of words) who repeatedly claims they aren't doing something, then does it. Authors United says they aren't taking sides, while repeatedly chastising Amazon and not placing any blame at all on Hachette. AFAIK, they haven't even contacted Hachette. Roxana Robinson states readers are buying books from places other than Amazon, but that Amazon is still hurting authors. Authors United pens a letter praising the importance of editors, and then doesn't have anyone edit all of the typos and nonsense out of their own letter. Believing 900 signatures is somehow greater than 8000. Stating Amazon's reputation is at stake, when Amazon customer approval since the Hachette dispute went public has actually gone up. Publicly whining that Amazon is hurting authors, which is the equivalent of saying that "Your negotiation tactics are hurting us so your method is working." This is all typocritcal behavior, and something the legacy industry does a lot.

"Bookholm Syndrome" is when authors fight to protect the publishers that are exploiting them, even though they can't do so well because publishers actions are selfish, harmful, and indefensible. This applies to midlist authors yearning to become bestsellers, or newbie authors yearning for a publisher deal.

Typocrite is new to me but I expect to get a lot of uses for whale math as there are plenty of math-illiterates out there.

More at Konrath's site.

[Barcey]

Apparently Authors United is going to complain to the DoJ now. I would hate to see what would happen if they started taking sides.

http://www.thebookseller.com/news/au...t-inquiry.html

Authors United is to call on the US Department of Justice to launch an antitrust inquiry into Amazon, according to a Financial Times report.

The group, which last week said it was writing to Amazon’s board over what it called “sanctions” on Hachette Book Group authors, is asking authors to sign a letter to William J Baer, assistant US attorney-general for antitrust, said the FT.

In a message to authors seen by the publication, Authors United founder Douglas Preston (pictured) was quoted as saying the letter would ask the antitrust division to “examine Amazon’s business practices”.

Preston also said he had been in touch with the Department of Justice. “They are expecting this letter and they have told me that they welcome any information we can provide,” he wrote.

Now all that Preston has to do is actually find information to send them.

[DiapDealer]

You mean they aren't even going to give Amazon's board members an opportunity to respond to their letter before trying to sic the DoJ on them?

No. Not taking sides at all.

[Nate the great]

Originally Posted by Barcey

Apparently Authors United is going to complain to the DoJ now. I would hate to see what would happen if they started taking sides.

http://www.thebookseller.com/news/au...t-inquiry.html



Now all that Preston has to do is actually find information to send them.

[crossi]

Preston also said he had been in touch with the Department of Justice. “They are expecting this letter and they have told me that they welcome any information we can provide,” he wrote.

This sounds the equilivant of someone at a job interview who is told "Leave your phone number and we'll get back to you" or the police responding to a complaint by someone of aliens in their backyard. Want to bet the letter ends up in a circular file?

[fjtorres]

Originally Posted by crossi

Preston also said he had been in touch with the Department of Justice. “They are expecting this letter and they have told me that they welcome any information we can provide,” he wrote.

This sounds the equilivant of someone at a job interview who is told "Leave your phone number and we'll get back to you" or the police responding to a complaint by someone of aliens in their backyard. Want to bet the letter ends up in a circular file?

They use shredders liberally in this administration.

I interpret it as "Give us more than PR spin..."

[eschwartz]

Originally Posted by fjtorres

Typocrite is new to me but I expect to get a lot of uses for whale math as there are plenty of math-illiterates out there.

Typocrite! Genius!

[fjtorres]

Originally Posted by eschwartz

Typocrite! Genius!

Konrath is also a pretty good writer, so he's not just a snarkmeister.