What should a writer’s position be on the battle between Amazon and the Hachette publishing conglomerate? Let’s have some basic information, for a start
As print publishing firms competing with digital rivals have less than ever to give the majority of writers – who have no record as best-sellers — where should scribblers’ sympathies lie in the fight between the Hachette publishing empire and Amazon?
The essential details of what they are quarrelling about are being hidden from us on grounds of commercial secrecy — as noted in one report after another**. These are negotiations conducted down dark alleys. Without those details, we can only puzzle over the tones of ringing certainty in which newspaper commentators have unanimously been denouncing Amazon – although the bookselling giant was plainly wrong to punish Hachette and its authors in these ways noted by The Los Angeles Times:
Amazon is subjecting many books from Hachette to artificial purchase delays. Books that had been available for next-day delivery now take 2-5 weeks to ship. Some titles don’t surface in search as they should. … As a result, Hachette will sell fewer books.
Strangely absent from coverage of the war is an eye-popping point for writers made by a sharp-eyed reader of The New York Times:
To the Editor:
Neither Amazon nor the publishers are pure of heart. Amazon is facing serious pressure on the profitability front from investors, so it is looking to increase margins and reduce costs.
The publishers see e-books as their largest profit area. A Publisher’s Lunch article last year showed the profit breakdown for HarperCollins:A $27.99 hardcover provides a $5.67 profit to the publisher and a $4.20 royalty to the author; a $14.99 e-book provides a $7.87 profit to the publisher and a $2.62 royalty to the author.
While the publishers are making a claim to a noble struggle against Amazon’s efforts to devalue publishing, they are also seeking to protect their higher profits on e-books, not higher royalties for writers. While Amazon claims to want to offer readers the best pricing, Amazon has no qualms about using its powerful market leverage to get what it seeks while inflicting collateral pain on readers to boost its profits.
The two players that are suffering in this situation are the authors (book sales delayed or prevented, dramatically lower royalties) and the consumers, many of whom have invested heavily in the Kindle-based environment.
Barrington, R.I., May 31, 2014
For authors to extract a bigger share of e-royalties, we are guessing that more scribblers with market power ranging from middling to great will have to start publishing e-books on their own, and do well at it. What advantages of being conventionally published do they give up, when they take the indie road? Fewer and fewer. Many more authors who have tried both the old route to being published and the new say exactly what this Guardian reader did last month, reacting in the comments section of a blog post about self-publishing:
29 May 2014
I’m not a fan of self-publishing, but I don’t think this article addresses some of the salient reasons for its rise. Nothing is mentioned of the radical shift in traditional publishing to put marketing efforts into nothing but established writers with blockbuster track records, or its abandonment of a good editorial process.
Having been one of those writers who did get published by a major publisher, it quickly became obvious that it was a waste of time and financially costly. The royalty rates offered (especially on electronic sales) are, frankly, laughable. There is no effort at marketing. As a new author, you are expected to do all the publicity and marketing for yourself anyway. The least one might expect was a decent line edit, but the book I published through a major house was published with typographical errors aplenty. So, exactly how does it benefit new writers to even consider submitting to a traditional publisher?
Forget the money. What about the cultural landscape? Are publishers are lining up to publish radically new forms of narrative? No. In fact, the chances of you getting a publishing deal for your book depends, most notably, on how much it resembles another book that’s done well.
And if a writer opts for self-publishing and does well with it, there is a far better chance of having a major publisher will pick you up, republish your work, offer far better terms, better editors and some marketing – now that you no longer need it.
… [T]he disdain in this article for the self-published work doesn’t take into account what is driving many authors to circumvent the publishing apparatus altogether.
At least one author, Barry Eisler, is standing up for Amazon, saying: “More people are buying more books than ever and more people are making a living by writing them. Why do millionaire authors want to destroy the one company that’s made this all possible?”
The problem for many in publishing is that the dominance of this one company, with its Kindle store, keeps growing. It is estimated that e-book sales will soar to almost $9bn this year in America, while print book sales fall below $20bn, down from $26bn in 2010.
Yes, it’s clear from those numbers that Amazon has too much power in e-publishing. But to see what can be done about it, let’s have some more information about precisely what terms it was arguing about with Hachette.
** For instance, although The Los Angeles Times’s handy summary of the dispute is highlighted as an instance of ‘an unusually public battle’ — in ‘Amazon and Hachette: The dispute in 13 easy steps,’ — its step 6 says:
Amazon has not commented to The Times regarding this dispute other than to point us to a message-board posting in the Kindle discussion forums on its site. There, it explained that Hachette was one of its 70,000 suppliers and that the two had been unable to reach acceptable terms (without disclosing what was being negotiated).