March 18th, 2010
By
Chris Meadows
It looks like the ghost of the Amazon/Macmillan feud is still lingering in the air.
The New York Times has a lengthy piece covering the ongoing confidential discussions between Amazon and publishers. Apparently Amazon is up to its old tricks again, threatening publishers that it may stop selling their books if they do not agree to a list of concessions.
Amazon is apparently conceding the agency pricing model for e-books that most of the major publishers want, but if the Times’s sources can be believed it is demanding those publishers agree to three-year contracts as well as stipulate that no other e-book sellers could have lower prices or better terms. Publishers are reluctant to commit to a contract of that length given how much the e-book industry can change in just a short time.
Meanwhile, Apple seems to be asking much the same thing, at least insofar as lowest prices go. And while Amazon is only agreeing to the agency pricing model for the major publishers and trying to keep the smaller publishers on its standard wholesale model, Apple is offering it to all publishers, large and small—which means that if a publisher takes Apple up on it, he will need to insist on agency pricing with Amazon, too, or else run afoul of the lowest-price clause.
And hovering over all these publishers’ heads like a sword of Damocles is Amazon’s ability to remove the “Buy” buttons from its site and deprive them of a substantial source of revenue. If Amazon were to pull this sort of thing again, the outcry would probably be considerable—but that didn’t stop Amazon from keeping Macmillan’s books unavailable by direct sale for a whole week.
There can be no doubt that we are living in interesting times.
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