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Books written by Ray Sullivan
Showing posts with label Hachette. Show all posts
Showing posts with label Hachette. Show all posts

Wednesday, 20 August 2014

Should self published authors be concerned about the Amazon/Hachette dispute?

Nobody outside of Amazon and Hachette knows the fine details about their current dispute, despite the war of words and deeds being very public. At the popular book level readers are finding it difficult to find, order, pre-order or buy books by authors such as J K Rowling (under her pen name Robert Galbraith), Malcolm Gladwell and James Patterson. Gladwell has broken ranks with many of his Hachette co-authors in public, speaking critically about Amazon. His view is that although Amazon sales have made him a lot of money in the past years, they've also made Amazon a lot too. He feels their dispute is treating him unfairly, given the money Amazon have made out of him to date. Most affected authors are not speaking out publicly in case Amazon targets them long term. I think that's unlikely, but for the majority of Hachette authors who probably eke out a marginal income from their books (the median annual income for traditionally published British authors is estimated at £11000, according to recent research) the risks of upsetting Amazon are very real.

Patterson has been outspoken, too. He's pointed out the risks we face if Amazon gets a monopoly in every field it dabbles in, and lets be honest, there are very few fields it doesn't dabble in. He calls Amazon's attempt at forming monopolies 'a national tragedy'.

The dispute has happened because of a court ruling that determined that Hachette and the other four big publishers in America had colluded with Apple over pricing. Part of the ruling stated that publishers had to renegotiate with retailers like Amazon and Apple, taking into account the findings of the case. Hachette are the first of the big five to engage in these negotiations. If Amazon get their way with Hachette then it is likely that their subsequent negotiations with the remainder will be easier for them. It would appear that Amazon have seen the negotiations as an opportunity to leverage a deal that reaps them a lot of additional money and to erode the sales base of their competitors.

So, should self published authors care? As I've said in another recent post, the relatively high cost of Hachette books makes our self published books look more like a bargain. But let's not forget that behind all traditionally published books lie an army of editors, formatter, designers, marketers and the myriad other actors that play a part to get a book into a bookshop. Because we tend to carry out these activities ourselves we tend to forget that they are a value adding element of all books.  In part this is because many self published authors produce highly creditable book covers, write effective blurb and engage in reasonable levels of self promotion.  We also tend to do a reasonable job of editing, but probably miss the cutting insight of a professional editor who makes a good book great.  The detail management of our books is also generally good if rarely perfect, however I've read a lot of ebooks via the big five lately and the typos are unfortunately too frequent, so perhaps us loners are on or near a par.  Marketing is probably our weakest point, I can't afford to take out full page advertisements in national newspapers and most, if not all, book reviewers are and probably always will be, unaware of my books.

Let's be brutally honest.  If Hachette or one of the other major publishers showed an interest in publishing our books, most of us would give it serious consideration.  Sure, some well established authors such as Stephen King are moving the other way, probably in an attempt to strengthen their negotiating positions with the industry, but they are doing this from a position of financial security.  This isn't to say there's anything wrong with self publishing; I'm proud of the movement and the effect all of us are having on the industry collectively, but I think there is still a strong place for the traditional publishers too.  Their models may be dated and they will need to change the way they deal with authors and retailers, but they are needed.  A world of only self published books is as unhealthy as the one that treated self publishing as worthless vanity, a world that we left only a few years ago.

So we do need to care about the current dispute?  The problem is that we don't know exactly where the sticking points are, what the terms Amazon are trying to achieve.  But in the absence of hard facts it is not unreasonable to assume that Amazon are trying to railroad the publishers and long term that won't be great for authors or consumers, even if there is a short to mid term advantage in book pricing for consumers. I think we should care and we should do something about this. Individually we are but nothing; collectively we are kings. I think we should send Amazon a message, not an email such as it sent us attempting to procure our services to do its dirty work, but a collective statement that hurts Amazon where they care, in their wallet.

About 18 month ago I blogged about this, just after the DoJ ruling, and looked at the issue from self published authors.  I suggested we could present some passive resistance to Amazon by suspending our books for a week at a time, not just me and a few friends but a whole army of self pubbed authors.  You can read the blog post here.  The post was well read, but the reaction was muted to say the least.  A temporary boycott needs to be in numbers that Amazon will take notice of, so how about we revisit the concept.  Perhaps traditionally published authors would like to consider joining in too?

Let's set a date, 1st September push the unpublish button on your dashboard for all of your books and leave them unpublished for a week.  If you want to take part in a bit of active resistance then push this blog post out to all your author friends on your network.  Let's start #boycottamazon on Twitter to see if there is any support out there.  Email me at raysullivan.novels@yahoo.com to pledge support.  Let's make a difference.

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Monday, 18 August 2014

Hachettte CEO Responds to Amazon Spam Request

In the US Bronze is on a countdown promotion starting Sunday 14th September 2025 at $0.99 for the eBook, rising to $1.99 on the 17th September before reverting to the full price of $2.99 on the 20th September.  All promotions commence at 8:00 am PDT on the stated days.

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Just over a week ago Amazon astounded the self publishing world by emailing all of their KDP authors with a bizarre call to arms against Hachette, specifically the CEO of the publishing company.  They wanted all of the authors publishing through Amazon to email the Hachette CEO to complain about Hachette's position in its ongoing dispute with Amazon over pricing of ebooks.

Now most Amazon KDP authors are not published by Hachette.  The few who are will know that Amazon are suppressing their books, limiting their sales.  Potentially, if they believe the Amazon stance to be better for them, they could carry out Amazon's request and spam the CEO of the company that has invested in their books.  Edgy tactics for those who have probably striven for years to get that elusive publishing contract.  Pointless for the vast majority who don't have contracts with Hachette and who will probably never get one, may not even want one but for those that do they would probably not want to get the attention of the CEO in such a negative way.

My view, which many readers supported through tweets, is that CEOs shouldn't be inciting customers to spam other CEOs.  Unlike the craze of CEOs challenging other CEOs to pour iced water over their heads for charity this wasn't a one-on-one attack.  It was an attempt to bully the CEO of Hachette using a mob that had no business, in the main, getting involved.

So I wrote to the CEO of Amazon, Jeff Bezos instead.  In part I wrote to ask him to desist from invoking me to do Amazon's dirty work and to be fair, for the last week they haven't.  But the main reason for writing to Mr Bezos instead of Michael Pietsch, CEO of Hachette, was to point out that the competing pricing methods at the heart of the Amazon/Hachette isn't the issue, Amazon's attempt at dominating the ebook industry through KDP Select and Kindle Unlimited is.  I also pointed out that both of those services would benefit greatly by the dropping of the exclusivity clause Amazon insists on.  If you haven't seen my email, which I CC'd to Mr Pietsch out of courtesy, you can read it here.


Unsurprisingly Mr Bezos hasn't replied to my email, however Mr Pietsch did take the time to write me.  To be fair to Mr Pietsch I didn't write specifically supporting his side of the debate, I wrote to point out that Amazon were out of line with their attempt to recruit the KDP authors to do their bidding.  Mr Pietsch attached a letter that he put out after the Amazon email which explains Hachette's side in this saga but added a few words showing that he had taken the time to read my email.  Below is the full email from Mr Pietsch including his reply to all KDP authors, which has already been circulated on the web quite extensively.  It is well argued and worth reading, even for those of us not directly affected by the dispute.  As most of us are consumers as well as authors the outcome of the dispute is important - Hachette's approach may or may not price books higher than Amazon would like, but it gives consumers a choice. Amazon's approach, to gain absolute market dominance, is likely to cost consumers in the long run.

Here's the email:

  Your letter in response to Amazon's "Important Kindle Request"


Thank you for sending me your thoughts about Amazon’s letter to KDP authors.  Below is a note of clarification that I’ve sent to those who passed along Amazon’s complaints, which I thought you might want to see as well.

 

It’s heartening to hear your thoughtful comments.  Thanks again for writing.

 

Yours,

 

Michael Pietsch

CEO, Hachette Book Group

 

Thank you for writing to me in response to Amazon’s email.  I appreciate that you care enough about books to take the time to write.  We usually don’t comment publicly while negotiating, but I’ve received a lot of requests for Hachette’s response to the issues raised by Amazon, and want to reply with a few facts.

·        Hachette sets prices for our books entirely on our own, not in collusion with anyone.

·        We set our ebook prices far below corresponding print book prices, reflecting savings in manufacturing and shipping.

·        More than 80% of the ebooks we publish are priced at $9.99 or lower.

·        Those few priced higher—most at $11.99 and $12.99—are less than half the price of their print versions.

·        Those higher priced ebooks will have lower prices soon, when the paperback version is published.

·        The invention of mass-market paperbacks was great for all because it was not intended to replace hardbacks but to create a new format available later, at a lower price.

As a publisher, we work to bring a variety of great books to readers, in a variety of formats and prices.  We know by experience that there is not one appropriate price for all ebooks, and that all ebooks do not belong in the same $9.99 box.  Unlike retailers, publishers invest heavily in individual books, often for years, before we see any revenue.  We invest in advances against royalties, editing, design, production, marketing, warehousing, shipping, piracy protection, and more.  We recoup these costs from sales of all the versions of the book that we publish—hardcover, paperback, large print, audio, and ebook.  While ebooks do not have the $2-$3 costs of manufacturing, warehousing, and shipping that print books have, their selling price carries a share of all our investments in the book. 

 

This dispute started because Amazon is seeking a lot more profit and even more market share, at the expense of authors, bricks and mortar bookstores, and ourselves.  Both Hachette and Amazon are big businesses and neither should claim a monopoly on enlightenment, but we do believe in a book industry where talent is respected and choice continues to be offered to the reading public.

Once again, we call on Amazon to withdraw the sanctions against Hachette’s authors that they have unilaterally imposed, and restore their books to normal levels of availability.  We are negotiating in good faith.  These punitive actions are not necessary, nor what we would expect from a trusted business partner.

Thank you again and best wishes,

Michael Pietsch

_____________________________________

Michael Pietsch | Chief Executive Officer

237 Park Avenue New York NY 10017


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In the US Bronze is on a countdown promotion starting Sunday 14th September 2025 at $0.99 for the eBook, rising to $1.99 on the 17th September before reverting to the full price of $2.99 on the 20th September.  All promotions commence at 8:00 am PDT on the stated days.

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Follow me on Twitter: @RayASullivan

email me at raysullivan.novels@yahoo.com

Check out my comedic ramblings as Throngsman on www.newsbiscuit.com

     

   

 


Sunday, 10 August 2014

Amazon look to self published authors to fight their battles

I received an email from Amazon today imploring me to step into their ongoing dispute with Hachette.  I'm not renowned for my diplomacy skills, so I'm guessing mediation wasn't on their agenda.  I'm more of a direct problem solver, willing to roll my sleeves up.  Which sometimes gets a little misinterpreted as aggressive, but there you go.

Anyway, Amazon didn't just email me, they emailed every KDP author as far as I can tell.  They outlined their case for not bowing down to Hachette's pricing policy for ebooks, with the upshot being that they are trying to bring ebook prices down, helping promote sales which, they claim, will help authors realise more royalties.  To that end they have requested every KDP author to email the CEO of Hachette to tell them to back off, or something like that. 

Now Hachette don't publish my books and probably never will.  So their pricing policy is irrelevant to me as an author.  If they want to overprice ebooks it just makes my books look like better value than ever.  Why would I want to meddle with that?  Because of the dispute many Hachette titles are not being stocked by Amazon at the moment, so if I did want to pay over the odds for one of their books I can't buy them from Amazon.  No problem, Amazon are big, but they're not the only option, which is a good thing.  I'll take my business where I need to.

But the real big issues for me are, firstly, that I don't like spam and really don't like being asked to contribute to a spam offensive.  Big companies like Amazon shouldn't be canvassing customers to do this kind of dirty work, surely?  Secondly, I don't think Amazon have got the point that ebook pricing isn't the problem, exclusivity in retail markets is.  And Amazon are trying to tie all ebook authors up to an exclusive deal with themselves through their KDP Select and Kindle Unlimited programmes.

So I did send the CEO of Hachette an email, actually as a cc correspondent,  The main recipient of my email was Jeff Bezos, CEO of Amazon.  I've little faith that Mr Bezos will read my email, CEOs are busy people, but by including the CEO of Hachette in the distribution I'm sure someone at Amazon will read it, to find out what Hachette are being told.  Possibly both CEOs will become aware, briefly, of the email.  It won't change the way either company works, I wouldn't expect it to.  But if it provides Amazon with a moment of reflection on their pursuit of exclusivity then my time will have been well spent.  Here's the email:

Dear Mr Bezos

I'm writing to you partly because one of your minions has undertaken to ask myself and, I'm assuming, every other KDP author to write a letter of complaint to the CEO of Hachette regarding the ongoing dispute between your respective companies. Although I'm cc’ing Mr Pietsch this email out of courtesy I'm not going to send him an email supporting your case for the following reasons:

  1. I don't think large companies such as Amazon should be inciting their customers to spam the CEO of other large companies.
  2. The dispute is irrelevant to myself and probably 99.999% of KDP authors - Hachette don't publish my books and probably never will. Spamming their CEO is unlikely to increase the likelihood of them choosing to publish me, either. Consequently, as an author, their pricing policy doesn't affect me, although their inflated prices will make my books look a whole lot better value.
  3. As a book consumer I'm relatively insulated by your dispute. I'm unlikely to pay their prices for an ebook, but if I decide one is worth it then I will source it from any ebookseller that is selling the book. If your dispute means you won't stock their books, then you just lose a sale to someone else.
  4. Hachette and their pricing policy isn't the big problem around ebooks today, Amazon's KDP Select programme is. Your company is trying to become the sole provider of ebooks through exclusive deals with authors, augmented by a brazen attempt to bribe us. Check your records, I've resisted this programme since inception because it is anti-competitive and we all know monopolies are unhealthy. The benefits of Amazon Prime and Kindle Unlimited are obvious enough for consumers, who won't care less whether the books they can borrow through these schemes are exclusive to Amazon or not. In fact, by dropping the requirement for exclusivity you will find you can offer many more books to make your programmes even better at no cost to your company. You would even be able to drop the monthly bribe slush pot, so you would save money while enhancing the attractiveness of Amazon.

I hope you resolve your dispute with Hachette amicably, however please ask your staff to avoid canvassing my support in such matters in future.

Regards

Ray Sullivan
 
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Visit my Book Website here


 
    
    Visit Project: Evil Website here                                        Visit DLF Website here

        Follow me on Twitter  - @RayASullivan

        Join me on Facebook -  use raysullivan.novels@yahoo.com to find me