Amazon Asks Authors to Spam Hachette CEO

THIS JUST CAME IN

Email from amazon KDP asking authors to take their side and email Hachette. Email gave out Hachette CEO, Michael Pietsch email, and even included points that we should address in the email. How thoughtful of them….

Now there is nothing in the email footer or header that says it’s confidential but I probably won’t repost the entire email because I’m sure there’s some catch and I do not want to be sued.  BUT here are a few selections from it anyway

Fast forward to today, and it’s the e-book’s turn to be opposed by the literary establishment. Amazon and Hachette – a big US publisher and part of a $10 billion media conglomerate – are in the middle of a business dispute about e-books. We want lower e-book prices. Hachette does not. Many e-books are being released at $14.99 and even $19.99. That is unjustifiably high for an e-book. With an e-book, there’s no printing, no over-printing, no need to forecast, no returns, no lost sales due to out of stock, no warehousing costs, no transportation costs, and there is no secondary market – e-books cannot be resold as used books. E-books can and should be less expensive….

another snippet

Moreover, e-books are highly price elastic. This means that when the price goes down, customers buy much more. We’ve quantified the price elasticity of e-books from repeated measurements across many titles… The important thing to note here is that the lower price is good for all parties involved: the customer is paying 33% less and the author is getting a royalty check 16% larger and being read by an audience that’s 74% larger. The pie is simply bigger. 

More longwinded TLDR

We recognize that writers reasonably want to be left out of a dispute between large companies. Some have suggested that we “just talk.” We tried that. Hachette spent three months stonewalling…

We’d like your help. Please email Hachette and copy us.
Hachette CEO, Michael Pietsch: M*********@hbgusa.com
Copy us at: readers-united@amazon.com
Please consider including these points:
- We have noted your illegal collusion. Please stop working so hard to overcharge for ebooks. They can and should be less expensive.- Lowering e-book prices will help – not hurt – the reading culture, just like paperbacks did.- Stop using your authors as leverage and accept one of Amazon’s offers to take them out of the middle.- Especially if you’re an author yourself: Remind them that authors are not united on this issue.
Thanks for your support.

I have to say, I did not expect to get this sort of email from Amazon.  While I like spending less out of my pocket, I’d hate to see the effects this will all have in a few years.  Amazon may become be all end all for books.

Think You Are Ready to Distribute? Try These On For Size

Since the topic of my class this month is on printing and distribution, I've decided to expand on a topic brought up in class discussion that is very useful and important to aspiring writers.  What is this headline topic?  Print on Demand services (P.O.D/POD because nostalgia)!  For those who do not know a print on demand service provider will print books once an order is received allowing for single copies or small or large batches to be printed at one time.

Blurb is one print on demand service that authors could consider.  Blurb offers print, ebook, and photography formats.  It offers a storefront for artist to sell through directly and an Amazon distribution program.  The direct selling method promotes that you keep 100% of the profit.  Blurb offers design and layout options listing a few age dimensions on the subpages.  It wants you to download their booking making software BookWright.  Using their software appears to convert to iBook format.  Blurb also does not have a minimum that must be ordered for print editions.  They will print one or thousands and offer bulk discounts.  You can also get an ISBN from Blurb or provide your own.  I feel their website lacks accessible information.  I had to search to find information about ISBNs, ownership, and copyright.

In the terms and conditions Blurb has a section that I would not want to agree to, though will likely find in the other websites' T&Cs, "10.  Other Content.  Notwithstanding Section 8.4.2 above, You hereby grant to Blurb an irrevocable, perpetual, nonexclusive, fully-paid and royalty-free license (with right to sublicense) to use, create derivative works, reproduce, distribute and publicly display any Content, but not your Book Content, that you upload, post, email, transmit or otherwise make available on the Website or App (“Other Content”).

Lulu is another on POD provider popular with writers and photographers offering print, ebook, design, and professional aid.  It offers different print quality levels to fit different budgets.  The site details and shows the different binding, paper size, color, and document type options.  Lulu makes ebooks available in several formats for popular readers including Nook, Kobo, Kindle, and iPad.  Lulu offers a print and ebook package called Amplifier that makes the process simpler for newcomers.  Lulu provides a free ISBN or you can provide your own.  There is a book cover wizard for those who wish to make use.  Book will be available to purchase on Lulu.com.  As the site states, "priority distribution to the iBook store and the Barnes & Noble Nook Store," and creators keep 90% of the revenue from ebook sales.  Creators retain ownership of source files and the copyright.  Lulu also offers promotional, editing, book to screen, and review services for artists who may need help/support in this area.  The promotional services include posters, bookmarks, website hosting.  One of the best options that sets Lulu apart are the retail channels made available for print and ebooks works.  The website is very easy to navigate and informative.  There are free tools and services and payments are made monthly.

Create Space is probably one of the most well known POD services because of its affiliation with Amazon.  It is an Amazon company and a quick glance over the website would give the impression that it is specifically for Amazon and Kindle editions.  It can appear a bit cluttered and overwhelming to navigate for beginners.  There are professionals available for those who choose to reach out in the support and help section.  The standard distribution is through Amazon and Amazon Europe but there is also an option for "expanded distribution."  This would make your book available through Barnes and Noble and Ingram, libraries, institutions, and Create Space Direct.  It also offers a 60-day satisfaction guarantee though a refund is the last option, "we will work with you to reach a reasonable and satisfactory resolution. If we're unable to resolve the issue to your satisfaction, we will refund the full amount you paid to us for that service" (Create Space Guarantee).  The website does not come straight out and say it but the fixed fees and percentages are a bit higher than the others.  You may have to search around the site to find this page, Royalties Overview, like I did that lists fixed fees and sales channel percentages, the homepage links you to a video explaining royalties and has a calculator.  Like Lulu there are paid services as well as free resources.

Between the three mentioned I would choose and recommend Create Space or Lulu.  Blurb offers limited ebook formatting and distribution where Lulu is diverse.  Important information about source ownership and copyrights, payments, and fees are easy to find on Lulu.  There is even an application for estimating revenue on print and ebooks showing all fees allowing artists to determine the best price for their product(s).  The additional services offered may also be very useful for a self-publishing artist.  Create Space has great options for design, editing, and distribution.  There is a large community to turn to for support and questions.  Plus there is power behind the brand, but you pay for that.

Another worth mentioning is indie ebook distributor Smashwords.  So check them out if you aren't interested in print editions at this time.

This is just my quick overview of three notable PODs.  Please leave any comments suggestions, corrections, or additional information in the comments.  If you've had personal experience with any POD I would love to hear about it.

Amazon Dodges Lawsuit from Ill Prepared Indie Booksellers

You may or may not have heard about the lawsuit against Amazon and the big Publishing houses.  I'm leaning towards not but that's ok because I'm going to tell you a little about it right.

Some whack-a-doodle indie booksellers decided to right the good fight and sue Amazon and six big publishing companies alleging that " by signing agreements that call for the use of DRM on e-books sold through the Kindle, the online retailer and the publishers have combined to restrict the sale of e-books."  According to Jim Milliot at Publishers Weekly the complaint was filed in the U.S. District Court for the Southern District of New York and stated that Amazon and the Publishers (Harper Collins, Simon & Schuster, Penguin Random House, Hachette Book Group, and Macmillan) signed contracts for the sale of ebooks with DRM that was,  "specifically designed to limit the use of digital content" to Kindle devices.

Makes sense right?  Looking at the ebook market and deals with publishers I could see how one would jump to that conclusion.  However, to go as far as to take the matter to court they must have had indisputable proof.  A Recording of a shady backroom conversation between the big guys making deals that would screw over the independents.  But apparently not.

Federal Judge Jed Rakoff dismissed the claim that the Big Six and Amazon conspired to keep independent competition from selling ebooks.  

As stated in his ruling via GalleyCat:

"The evasiveness of this allegation is remarkable.  Plaintiffs do not allege an unlawful agreement, only vague ‘oral discussions or agreements regarding the use of restrictive DRM.’  Plaintiffs do not even allege that any such discussions or agreements actually occurred, only that they may have occurred.  And plaintiffs do not specify who participated in these hypothetical discussions or agreements, only that they may have involved ‘one or more’ of the Publishers and Amazon."

That's right.  They went to court without a shred of evidence.  Nothing.  How did it even get this far with just accusations?  Seems the judge really had no choice but to dismiss.  As an independent I'd have liked to support their efforts but when you have no proof you lose a lot of credibility.  Maybe they had something that isn't being released or something that was buried by the publishers.  Or maybe the judge was paid off.  Probably not but might make for a decent story.