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Amazon's war with Macmillan over 9.99 pricing
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I guess we'll have to watch for more updates. (no comment from either party) the NY Times reports it is a temporary removal.



here is a copy of a letter the CEO of Macmillan posted for his authors and agents.


Excellent points made! I had seen previous Joe Konrath blog posts on eBook profitability too. I hope someone in the big publishing houses will listen. Amazon gets it. We get it, and I am frankly one of the readers that thinks $9.99 is too high to pay for some eBooks.
I like the possible model where a new eBook release you "just have to have" is higher priced for a while like a hardback is, and maybe where a club membership like Books a Million or being a loyal Kindle reader or Amazon customer gets you a couple of bucks off - then prices go down with demand or when paperback rights come out.
Gail/Ladyvolz wrote: "
really interesting"

I like the possible model where a new eBook release you "just have to have" is higher priced for a while like a hardback is, and maybe where a club membership like Books a Million or being a loyal Kindle reader or Amazon customer gets you a couple of bucks off - then prices go down with demand or when paperback rights come out..."
Yes, I agree with this also.


After reading several posts about e books prices on Amazon, I had some thoughts, which sometimes gets me into trouble. LOL
When I bought my Kindle 1 in Oct. 2008, Stephen King had released an e book to Amazon titled. UR
At that time, it was only released in e book form.
So. . . .why can't authors negotiate and sell directly to e book publishers and have their own contract with them? Cut out the middlemen.
Authors under contract? Authors have been known to write under different names. Remember King writing as Backman? Joe Hill, King's son? This one was no big surprise, word had spread on the internet way before book was released.. Dean Koontz as Deanna Dwyer, Leigh Nichols, Brian Coffey, Owen West and other names he used. Koontz began publishing books in 1968 and until 1988, when all his works were then published under his "true" name.
Need an editor? Author contracts this out for individual books, if he so chooses. They would be freelance editors.
Self publishing, what a concept! Let's see, didn't Nathaniel Hawthorne and Ben Franklin publish their own works to be distributed as pamphlets?

This sounds like an interesting discussion over on Delphi! We do miss you and Dave and your take on things. I am glad you have found a home of like minded readers over there! This situation does portend a seismic change in the book world.
Brakedrum wrote: "There has been a lot of discussion on the delphi forums (mystery thrillers, booklovers general fiction and kindle lovers) since Friday. Here's what I had posted on the forums:
After reading sever..."

sign me annoyed.

Why would someone on the fence buy a Kindle today with the current handling of this situation?
Why should I be satisfied with an independent press or self published author alternative eBook when I want the new Kate Shugak or Bennie Rosato release?
I wrote Amazon Customer Service an email questioning the status and was told:
"Thanks for sending us your comments. We will e-mail you when these titles are available again, which we hope will be soon.
Macmillan, one of the "big six" publishers, has clearly communicated to us that, regardless of our viewpoint, they are committed to switching to an agency model and charging $12.99 to $14.99 for e-book versions of bestsellers and most hardcover releases.
We have expressed our strong disagreement and the seriousness of our disagreement by temporarily ceasing the sale of all Macmillan titles. We want you to know that ultimately, however, we will have to capitulate and accept Macmillan's terms because Macmillan has a monopoly over their own titles, and we will want to offer them to you even at prices we believe are needlessly high for e-books. Amazon customers will at that point decide for themselves whether they believe it's reasonable to pay $14.99 for a bestselling e-book. We don't believe that all of the major publishers will take the same route as Macmillan. And we know for sure that many independent presses and self-published authors will see this as an opportunity to provide attractively priced e-books as an alternative.
Kindle is a business for Amazon, and it is also a mission. We never expected it to be easy!
We're always striving to bring the most selection to our customers at the lowest possible price.
We hope to see you again soon."

As my DS would say, I call shennanigans. Once people are able to obtain reasonably priced items in the format they want them, the pirating goes down. Trying to force people to buy hardbacks won't work any better than what the newspapers have been trying. People will go without, borrow them from the library or each other or just wait for the paperback.
I am beginning to suspect that there is some collusion between Apple and some of the publishers. I don't think it's a coincidence that MacMillan tried to force the issue two days after the iPad was announced with higher book prices.
I will not pay the higher price and I think there are a number of people around who feel the same. I don't pirate and I won't pay extortion either.
JMHO

I agree totally. It's the library and less expensive books for me for the time being. Hopefully, the business model will sort itself out. I'm finding lots of books in the $5-$8. range, not to mention all the freebies about which Gail keeps us apprised. :-)


On the economic side, the Amazon plan might atualy pay better for the publishers, but they don;t like getting pushed around (or maybe worry about where Amazon wil push next).
I am amazed that Amazon can try to capture the market by selling every book at a $5 loss. I thought that was called "dumping" and was not particularly legal.

As for the iTunes/Amazon stuff. I don't remember Amazon particularly sticking it to iTunes. I do remember when Amazon opened their music store and matched iTunes pricing while offering older songs at .79. Apple actually got into it with the music pubs two or three years ago over DRM, once that fight ended, DRM went away, BUT iTunes started charging $1.29 for newly released and current songs.
The new publishing format pushed by the publishers and accepted now by Apple, Amazon, Barnes & Noble and Sony will pay 70/30 of the new set digital price by the publisher. Meaning the pub sets the price at $14.99, then Amazon/Sony/B&N gets $4.50 per digital book sold. The publisher gets $10.49 per digital copy sold.
Actually the new price structure for digital means that authors will also get less on digital copies sold. Their % is based on net. Until they re-negotiate their digital share, they will lose approx 50 cents per sale.
Under the current format, say the retail price of the book is $25.00. Amazon PAYS the publisher $12.50 for the book. Amazon then has to sell the book at more than $12.50 to make any type of profit. When Amazon sold the book for $9.99 they lost $2.51 per book, not $5.
All the Macmillan books are back up at Amazon including all the kindle books.



When I bought a shiny new hardcover on first day release in first edition I didn't feel too bad if I was ready to read it when the pb was released. With an ebook, there is no incentive to buy early if I am not ready to read it and the price might be lower later.

Thanks much for the article link. It was quite interesting to realize that Macmillan is trying to impose a formerly used British pricing model on the American company, Amazon.
With one exception I agree wholeheartedly with whoever wrote the article. I clicked the back button to see since I went straight to the text and was told by the website I needed to register. Everyone is out for a buck these days.
I don't think the average Kindle user is going to opt for pirated versions of their favorite author's work.
OK, it was Paul Carr who wrote the article; re-clicking the link took me to page one.
Gail/Ladyvolz wrote: "really good article from an author/former publisher on the Macmillan issue.... article is published in today's Washington Post
"


A Night Too Dark: A Kate Shugak Novel


Yes that appears to be the case, and not all of them from what I have seen so far.
Examples: The Lock Artist: A Novel by Steve Hamilton is a $9.99 Kindle title and a Macmillan imprint.
Amy wrote: "I was just over at Amazon, looking at there prices for kindle books and I still see a lot of them for $9.99 or ever less. Is it just Macmillon that is changing their prices? I'm confused. "

P.S. the new pricing is supposed to go into effect sometime in March maybe


I never used to pay so much attention to the identity of the publisher of a favorite author. sigh. more things to keep up with.
Gail/Ladyvolz wrote: "to make it even more confusing:
P.S. the new pricing is supposed to go into effect sometime in March maybe"

P.S. the new pricing is supposed to go into effect sometime in March maybe"
I see Random house is standing by Amazon. Most of my reads are from Random and not Macmillan.

I remember when HCs actually had smooth edges instead of the "chewed" edges we get now.
I remember when the covers were embossed and they were something special.
I remember when books had color illustrations with an "onion skin" paper in front to protect the color.
Yes, books are still available in these forms, but they are for collectors, well over $200.00 each.
Publishers haven't cared about the quality of their product for a long time. Yes, I buy a HC and have typos. E books, whatever price they end up, will stay. Most authors write on computer and send it to the publisher in emails. They don't snail mail their manuscripts anymore. I can see a slight increase in price over $9.99 to make a profit, but not too much sympathy from me, for they don't have to pay for paper, distribution, inks, and storage.

I had e-mailed Preston back when we were first notified that his book would be delayed and received an extremely snarky reply directed at me for both about a sense of entitlement and about people leaving bad reviews for authors whose books are delayed and/or priced too high (which I have never done). Apparently I was not the only one who received a snarky reply because within a week, people had posted his replies on the kindle discussion boards and were trashing him right and left for his attitude towards his readers. He also came on the discussions and defended himself which only led to more ripping and bashing. I thought if he had only kept his mouth shut it would have all died down, but by trashing everyone, he opened a can of worms. (which has since died down.)
Now amazingly, it looks like he just can't keep his mouth shut and it's all starting up again.


Books mentioned in this topic
The Lock Artist (other topics)A Night Too Dark (other topics)
Think Twice (other topics)
This doesn't really look to be something where the reader wins.