Archive for the ‘amazon’ Category

Gnashing of Teeth: Publishers vs Readers

Sunday, March 11th, 2012

Seldom has news of litigation against publishers demonstrated such differences in opinions. But as the Department of Justice signals that it may file suit in a case alleging that the largest U.S. publishers and Apple combined to set high prices for books, the shrill cries from publishers suggesting that “the end of retail competition for books is nigh” remain largely deaf to the myriad benefits for customers. If agency pricing is struck down, readers may once again see reasonable book prices from online retailers that years ago acknowledged that digital music and videos have a very different value than their traditional analogues. (more…)

Rich Books, Poor Society: Random House’s Price Spike

Monday, March 5th, 2012

To examine why Random House decided to jack up its prices to libraries for its ebooks, we should take them at their word. In the statement they provided to Library Journal, their reasoning is quite clear:

We believe that pricing to libraries must account for the higher value of this institutional model, which permits e-books to be repeatedly circulated without limitation. The library e-book and the lending privileges it allows enables many more readers to enjoy that copy than a typical consumer copy. Therefore, Random House believes it has greater value, and should be priced accordingly.

This messaging is all about the revenue Random feels they lose by allowing readers to borrow books for free, instead of purchasing books at high agency prices. Presumably, trade books priced at very high levels compensate for lost income. But higher prices means that many libraries will have to cut back their book acquisition, further restricting access to digital books, which is an obvious publisher goal of this strategy. Increasingly, the most popular titles are not going to be available at any library, and those that are, will be far more available in rich communities than poor ones.

(more…)

I Almost Bought a Book Today: Why I’m Friends With Amazon

Tuesday, February 28th, 2012

The majority of my fiction recommendations come from my father, a retired literature professor. He recently suggested that The Time in Between by the Spanish author Maria Dueñas was a worthwhile read, and so I scurried online to check it out. It’s available as an ebook at $12.99. That’s an agency price; the book is published in the U.S. by Simon & Schuster. I didn’t purchase it; digital books beyond $10.00 are generally unacceptable to me. (My partner bought a copy of the title in Spanish, El Tiempo entre costuras, for $9.99 for the Kindle; this edition is not distributed by Simon & Schuster).

There’s a backdrop to this story, as I did wind up getting the book another way. Both my father and I (as his digital tech support) are moving from Sony Reader to another platform for various reasons; my father was happy with his Sony device but it is breaking down. That’s a hard decision for me, because I am supportive of open standards; have labored for an open competitive marketplace in ebooks; and have served as a board member of the IDPF, which is responsible for EPUB and EPUB3, the dominant open standard for ebooks.

But as a consumer, I have to think about where my books are coming from and under what terms. No corporation works for me – they work for investors and shareholders – but sometimes interests more or less align. Amazon wants to sell things; the more things the better. Part of their strategy includes providing great customer service; putting downward pressure on prices; and generally providing an increasing number of services through the Amazon Prime subscription offering. That works for me; Amazon has my back as a consumer, at least for now. I would dearly love them to have a meaningful competitor, but that’s largely a longer term worry.

But Amazon can’t set pricing for titles from agency publishers, and I didn’t buy a copy of Time in Between for the Kindle – the book was muy caro. And, although my father is going to be moving with me to Kindle, he had already bought a copy on Sony. Since I am backing up all of his purchases on his behalf, I decided to read his Sony copy before retiring his device for good. What does that mean for Simon & Schuster? Lost sale. What it means for Maria Dueñas is less revenue.

When I heard that Amazon had decided to pull buy access away from Independent Publishers Group (IPG) Kindle titles in an attempt to get better terms, I assume that those better terms, if achieved, would ultimately be reflected in lower prices. Indeed, IPG has publicly lamented that they find it difficult to sell digital titles for less than $10.00 given their current cost structures. Yet as Jane Litte has observed, IPG is not offering anything in exchange to Kindle customers to convince us that the IPG strategy is better for me, as a consumer. In this case, my response is, “Go, Amazon!,” because as a consumer, I want a market that doesn’t treat digital books as the most holy manifestation of creative art ever conceived.

Some commentators have suggested that agency publishers seeking to keep ebook prices high are acting in their self-interest because the “price per read” is inevitably going downward. Higher ebook prices may retard the growth of ebook acceptance, preserving a larger relative share of print revenue, and thus granting larger publishers time to maneuver themselves into a stronger digital position.

But interests are not aligning well right now, and it is not just between publishers and libraries. Because we are living through a moment of a deep technologically-driven social transition, there’s much more conflict between all the sectors in the book economy. Previously stable organizational dynamics have been disrupted and outcomes are hard to predict. As Frédéric Filloux states in his Monday Note on ebooks, “The Giant Disruption“: “In less than a year, the ground has shifted in ways the players didn’t foresee. This caused the unraveling of the book publishing industry, disrupting key components of the food chain such as deal structures and distribution arrangements.”

For readers, high price points for ebooks might drive them to a library, except that publishers have withheld titles from libraries. Therefore, some readers might turn to pirated digital editions; others might turn to other forms of entertainment; others find cheaper books on Amazon. It has a dark beauty: through the combination of usurious pricing strategies and their undeclared war on libraries, the largest publishers have unerringly drawn their customers – readers with whom they’ve never cared to have a direct relationship – closer into the arms of the retailer whose market power and influence they most fear – Amazon. So much for a strategy of self-interest.

Many publishers and distributors must see themselves in a light quite different than the one Jeff Bezos casts on Amazon. Amazon is not merely seeking lucre for its balance sheet; it boosts its profits by delivering a positive consumer experience, because that is its uniquely competitive edge. As a consumer, that makes me a friend of Amazon. And, because publishers are not working in alignment with my interests, their marketplace goals have moved into conflict with mine. Maybe publishers have decided that pitting digital readers against their revenue goals is an acceptable trade-off. It doesn’t work for me; I didn’t buy a book today.

Renting out the library

Friday, December 9th, 2011

For librarians to endorse a sometimes awkward debate around business models, we must recognize that our organizations are in a difficult space in persuading publishers to continue providing ebooks for lending. The entire sales environment has been transformed, and the lack of physical barriers to digital access has a wide set of consequences for retailing as well as libraries. The “network imperative” permits innovative organizations to rethink models of supply and revenue; Amazon’s creation and promotion of the Kindle lending library is an excellent example of seizing this opportunity.

My recent note on alternative library models for ebook borrowing, At Close of Day, brought out two main currents: that an library agency aggregating contemporary ebooks could design more effective service models than the current system of distributed acquisition; and that one possible model for financial sustainability would be a partnership with publishers to utilize the reach of libraries to present an alternative retail outlet for ebooks. (more…)

Living in the Jungle: Amazon and Penguin

Friday, December 2nd, 2011

I’ve been thinking about Amazon’s entry into the ebook lending market, initially via Overdrive and now through the Prime subscription program, and considering its ramifications. I am hardly alone; publishers are obviously evaluating this move as well. Penguin’s abdication from the library market has been widely perceived to be a response to Amazon’s entry into ebook lending. As Eric Hellman notes on his blog, “The Penguin move should be seen not as corporate verdict on libraries, but as a reaction to Amazon’s entry into the library market. … The recently announced Kindle Owner’s Lending Library demonstrates that Amazon, blessed with its trove of marketing data, understands the power of libraries to promote sales. But it also demonstrates that Amazon is not content to leave libraries to libraries.”

The unique characteristic of Amazon’s lending programs is that the books are sourced directly from Amazon regardless of whether the reader finds the work through Overdrive or directly on Amazon, for Prime subscribers. This makes absolute sense for Amazon, and it is an opportunity enabled by their use of a proprietary ebook format. Amazon gains user intentionality data, and visits to their site are likely to drive up sales of books and other media, as well as shavers, GPS units, cell phones, and kids’ toys (and Kindle readers). From the perspective of a cloud-based platform player, a library-style lending program is an attractive offering, and will be the nexus of investment in additional content and services; among its other affordances, it is a “Look Inside” on steroids. (more…)

Fast Devices, Walled Gardens

Saturday, November 5th, 2011

Something about Amazon’s release of the Prime Lending Library for Kindle owners finally made me realize that both e-book retailers and publishers confront vital new struggles. The conflict is immediate for e-book retailers, yet more fundamental for publishers; neither has much to do with publishing, but far more to do with the Internet and technology.

From my perspective, the lesson of Amazon’s lending service is not that publishers might not be getting a fair compensation model. Rather, the problem is that Amazon’s new tablet, the Kindle Fire, combined with the Amazon Prime program, provides access to “18 million movies, TV shows, songs, magazines, and books.” And in that, it is not the free books that are a problem for book retailers and publishers: it is the movies and the music. (more…)

Commodity Hardware, Commodity Culture

Friday, September 30th, 2011

 

 

 

 

 

 

 

 

 

 

This week, Amazon introduced the Kindle Fire, it new tablet device. Fire is an amazing product with a compelling feature set, impressive technology, and the ability to secure access to a wide range of media: books, films, and music.  But I think the most amazing aspect of Amazon’s Kindle refresh was not the Fire: it was the price drop for new E-Ink models of basic Kindles to $79.00.

Commoditzing the hardware necessary to access culture translates into more widespread access to culture that is itself a commodity. Even though tablet computers enable powerfully enhanced and interactive e-books, the appeal of text-based stories is persistent; if, for no other reason, because text is cheaper. Despite my concerns about privacy, market share control of books, and proprietary formats, Amazon has been consistent with their latest product announcement: “There are two types of companies: those that work hard to charge customers more, and those that work hard to charge customers less. Both approaches can work. We are firmly in the second camp.” (more…)

Live-Blogging the Amazon Press Event

Wednesday, September 28th, 2011

10:51: Kindle Fire will cost $199.  Ships November 15.

Bezos keeps stressing the notion of “premium products and non-premium prices.”

10: 44: The browser on Kindle fire will be something new:

Bezos says Amazon asked how it could use its server power to improve the speed of mobile Web browsing.  A new product called Amazon Silk, a split browser that lives half on Amazon’s cloud computing systems, half on Kindle Fire.

10:43: This won’t kill the iPad, but it will be the first device to compete…

10:37: Bezos takes aim at Apple, saying the model of backing up content is “broken” as is the idea of syncing.  All content on Kindle Fire is backed up in the cloud.

Whispersync works with all content on Kindle Fire.  Pause a movie on the device, pick up where you left off at home on another device.

10:34: “Is there some way we can bring all of these things together into a remarkable product offering that customers would love?” -Bezos

“The answer is yes: It’s called Kindle fire.”

7″ IPS display, duel core processor.  14.6 oz, all the content.

10:29: Now Bezos is running down the various facets of Amazon’s media businesses: Amazon Prime, streaming video, MP3 store, cloud player.  Lead-up to a tablet that synthesizes all of these?

10:27: Now Bezos is talking about how Amazon has spent 15 years building its media business.

Customers who don’t want touch can get a $79 Kindle!  This devices ships today.

Pre-order starts today and ships 11/21.  “We’re going to sell many millions of these,” says Bezos.

Also announcing Kindle Touch 3G.  Same but with 3G.  $99 was the wi-fi.  3G is $149.

Kindle touch will cost $99!  The fabled $99 e-reader arrives.

10:18: New feature called “x-ray” that lets you look at “the bones of the book,” by which Bezos means looking up various historical references and real characters mentioned on a particular page.  Amazon has “pre-calculated all of the interesting phrases” in a book, so along with the book comes a “side-file” with all of this information included.

10:14: Unveils Kindle Touch with infra-red touch display.  This is a surprise, sort of…no tablet yet. But this is very cool.  New kind of touch display that, Bezos says, enables readers to switch hands.  With infra-red touch, Amazon has revised the tap zones so it’s easier to turn pages no matter how it’s held.

Bezos is running down all the things Amazon has enabled the Kindle e-reader to do: e-ink, real page numbers, Kindle singles,

10:05: Jeff Bezos takes the stage…

10:03: The event opens with a video of cool professionals touting the virtues of the old-fashioned Kindle.

10:01: Nuthin’ doing yet.  Some speculation: I think we’re likely to see an inexpensive, lightweight tablet that will be, like the Kindle, a pipeline into Amazon’s various content stores and fairly low-powered in terms of other functions. Not expecting, for instance, a fancy Web-browsing experience.  This will be the t

Someone’s coming on stage and taking a cover off of something on the podium…

9:50: Things haven’t started yet, but we’re seated in front of a stage with a big Amazon logo projected on the screen.  The conversation here is all about whether and what kind of a big deal this announcement might be.  Also, lots of complaining about the cold and the heat while waiting to get in.  Things are supposed to start at 10.

9:25: I’m here with a whole lot of other journalists waiting to get in to the Amazon event where we are expecting to see the unveiling of Amazon’s tablet offering, rumored to be called the Kindle Fire.

 

How Do You Piss Off Indie Booksellers? Send Them Promo Materials Featuring a Kindle.

Tuesday, July 19th, 2011

Yesterday, Jill Hendrix, owner of Fiction Addiction in Greenville, SC, opened a box of promotional material from Running Press to discover this poster, for forthcoming gift book Bent Object of My Affection by Terry Border. A quarter of the poster was taken up by an anthropomorphized (and apparently amorous) Kindle. “This is not something I’m going to hang up in my store,” Hendrix told PW.

Bent Object of My Affection is the second photo collection from Border, who adds limbs to inanimate objects using bent wire. “It feels a little bit like a kick in the face,” said Hendrix, that “one of the [images] they chose to use, on a poster that they’re paying to send out to independent bookstores, has a Kindle on it.”

Hendrix reported her displeasure on the Southern Independent Booksellers Alliance listerv, where it first caught our attention. PW is still waiting to hear back from the Perseus imprint on the promotional faux pas.

Barnes & Noble is Very Happy about California’s E-Fairness Legislation

Friday, July 1st, 2011

Forty-eight hours after Gov. Jerry Brown signed California’s sales tax fairness provision, which requires out-of-state retailers to collect taxes on sales made to California customers, Barnes & Noble has issued a statement.

“We thank Governor Jerry Brown for demonstrating his commitment to California businesses by signing e-fairness into law. This legislation will directly benefit California businesses by creating a fair marketplace,” said William Lynch, Chief Executive Officer, Barnes & Noble. “We believe that e-fairness will improve the economy, add jobs, and help struggling businesses everywhere in California. By signing this law, the Governor has made clear that his priorities are to help bolster economic recovery. This is a huge win for business in the state of California.”

It’s not hard to sense the glee in B&N’s statement as they watch their biggest competitor take a tumble in another state and cut ties with more affiliates. But it’s also hard not to see a measure of hypocrisy in Barnes & Noble championing a level playing field, when in the not-so-distant past B&N was running independent bookstores to the ground with their discounts.

It’s understandable for people out there to relish the sight of Amazon, in the big faceless corporate sense, squirm around as fairness prevails (and, no matter which way you cut it, the e-fairness legislation is nothing if not fair). But don’t forget all the affiliates that got dumped in the process–they’re the ones who are really losing here, not big, bad Amazon. Hopefully it won’t take another 12 years of legal battling to make things fair for them, too.