The very public Amazon vs.
Hachette dispute is like hopping in a time machine and being dropped off in
high school during class elections. The
companies are the two popular kids trying to convince everyone to vote for them
because their opponent is mean greedy bully who just wants to take your lunch
money.
Everyone grabbed their
popcorn and watched as the fight has left the school hallways and spilled into
the streets. But after several months of
back and forth and input from authors and the Authors Guild the situation has
become like two third graders arguing “no you! No, you!” repeatedly waiting for
the other to give up.
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| Amazon.com |
But the big question that
is probably on everyone’s mind? Should I care? Well, yes! Duh. What are they arguing over? What everyone
argues over, money, specifically eBook money.
Negotiations started in January of 2014 as their contract was nearing an
end. Emma Cueto sums things up nicely
over at Bustle,
“The
assumption in the industry is that Amazon wants the power to discount Hachette eBooks
whenever they want — essentially setting the price for these books at whatever
number it wants — which Hachette doesn’t want for obvious reasons. Amazon
probably also wants Hachette to pay more for “co-op,” which
is like advertising money that publishers pay to retailers so that the
retailers will spotlight a book on their website or in their store. Hachette,
naturally, doesn’t want to pay more.”
In a strange move according to Publishers
Weekly, VP of Kindle content David Naggar reportedly sent a letter to
literary agents, president of the Authors Guild, and Hachette authors proposing
that Amazon and Hachette “forgo all revenue on e-books sold through Amazon and,
instead, give them directly to the authors.”
It sounds good on the surface but it’s a passive-aggressive move to turn
authors against the publisher and ultimately destroy Hachette leaving Amazon to
pick up the remains like a hyena. Of
course Hachette responded in snarky schoolgirl fashion. Amazon returned with “nanny nanny boo boo,”
and claims that Hachette can afford the proposal, as it is a part of a huge
conglomerate.
Is Hachette a huge publisher? Yes. Is it part of a larger corporation? Yes. But
one business in a corporation cannot simply take money from another to
supplement a bad deal. Hachette is a
publishing company and Amazon is a retailer.
Hachette makes money from print and eBook Amazon makes its money from
books, MP3s, DVDs, clothing, jewelry etc. Amazon controls
50% of U.S. book sales and still has existing deals with other publishing
houses. They can certainly afford Naggar’s proposed offer, though he knew it
would not be acceptable and would never have to follow through, Hachette cannot
long term.
Print books are becoming far too rare and eBooks continue to
grow. If Hachette were to give up
profits from Amazon sales they would be extremely limited in the ways they can
makeup for that income. It would just be
a matter of time before Amazon’s deal left them broke. But that’s what they really want isn’t it?
It’s no wonder HarperCollins
decided to add print books and audio books to its website for direct sales.
If it works out perhaps they won’t renew contracts with Amazon.
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