Later On

A blog written for those whose interests more or less match mine.

Amazon.com: The dark side emerges

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UPDATE: Even more interesting: counterargument from Barry Eisler:

Scott Turow, President of the Big Publishers Club (aka the Authors Guild) just blogged about the Department of Justice lawsuit against legacy publishing’s agency pricing model. I talked about how unfair agency pricing was to Amazon and to authors two years ago. I think I was pretty prescient about the future of ebooks, and of publishing, even if my numbers weren’t nearly as optimistic as they could have been.

So now President Turow has written a call to arms, warning writers of the dangers of Amazon and the DoJ. I asked my buddy, bestselling novelist Barry Eisler, if he wanted to join me in commenting on the piece. Barry’s got a good bullshit detector and from time to time we’ve had fun dissecting and exposing obfuscation like Scott’s (see our thoughts on Hachette’s “We are Still Relevant” memo).

Scott’s original words are in italics; my and Barry’s reaction follow in plain text.

Here we go…

Continue reading.

Original post beginning:

Very interesting interview with Scott Turow, writer and current president of the Author’s Guild, on the direction (and tactics) of Amazon.com.

Late last week, the Justice Department warned Apple and five of the nation’s largest publishers that it was planning to sue them for price fixing. At issue is the agency model, a method of wholesaling e-books in which the publisher sets the retail price and the retailer takes a 30 percent cut. Most print and many e-books are sold under the traditional wholesale model, in which publishers sell books at a discounted price, and the retailer can resell them for whatever price it likes.

The unnamed player in this drama is Amazon, which had been selling e-books at a loss until two years ago, when the iPad came along and publishers used the emergence of the new device to pressure the online megaretailer into adopting the agency model, too. If Amazon wanted to sell e-books from the Big Six (as the six largest book publishers are called), it could no longer sell those titles for $9.99.

Publishers actually make less money with the agency model, so why have they insisted on it? The change was designed to limit the growing dominance of Amazon over American book retailing. On Monday, Scott Turow — the bestselling author of “Presumed Innocent” and other legal thrillers, and the president of the Authors Guild — posted a letter to members on the Guild’s web site. In it, he pronounced the Justice Department’s actions bad news for authors, “grim news for everyone who cherishes a rich literary culture,” and (contrary to first impression) ominous for book consumers. I called him up to find out more.

What are some of the Guild’s problems with Amazon? . . .

Continue reading.

Written by LeisureGuy

15 March 2012 at 9:16 am

Posted in Books, Business, Daily life

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