Tag Archives: amazon

The power of juxtaposition – Why I’m not wasting my time with Melville House any longer

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picard-face-palmFrom Melville House‘s latest ironically Ahab-like rant against their white whale, Amazon:

Remember that ol’ lawsuit between Apple and the Department of Justice? …

Just a reminder: Apple is appealing because the case didn’t go smoothly the first time around. The company called it a “fundamentally flawed endeavor that could discourage competition and harm consumers.” Judge Denise Cote ruled that Apple had violated antitrust laws by intending to set ebook prices through the agency model.

The publishers couldn’t afford to fight, but Apple could. On Monday, the company’s lawyer called attention to its competition, as if no one had thought to bring up Amazon before…

Publishers were trying to set prices along with other retailers like Apple because Amazon owned 90% of the ebook market. [bold emphasis mine] Apple’s lawyer Theodore Boutros argued this week that this is a legitimate way to “come into a market dominated by a monopolist.”

And this from Forbes, which we can assume is more reliable than Apple’s paid advocates:

E-books now make up around 30% of all book sales, and Amazon has a 65% share within that category, with Apple and Barnes & Noble accounting for most of the balance.

Dominating your competition by 40 points and dominating them by 15 points are worlds apart. And, how many of those Amazon sales are due to their insanely user-friendly KDP self-publishing platform? Are we even comparing apples to apples? (Sorry, B&N, but your e-book self-publishing platform is clumsy. I use it, but it’s like you’re not even trying.)

And this logic! “Our anti-trust violations were to fight monopoly…” Orwell is rolling over in his grave.

So, for this reason, I am removing Melville House from the side bar and will no longer waste my time looking to them for reliable information on publishing. Their fevered prejudice against Amazon has gotten to the point where the ratio of information to hate has slipped decidedly toward maniacal hate.

As the Forbes story points out: “An abusive, alcoholic father; a snake-oil salesman; a predatory lion; Nazi Germany: These are some of the metaphors publishers invoke to express their feelings toward Amazon.” There’s no room for that sort of counterfactual idiocy among serious-minded professionals.

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Deodorant isn’t just deodorant, or Why Le Guin’s comments were offensively chauvinistic (beyond their Islamophobia)

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mytwocentsIn chapter 120 of the Chinese classic, Wen-Tzu’s Book of Pervading Mystery (通玄真經), we read: “If they are valued for what is valuable about them, then all things are valuable. If they are despised for what is worthless about them, then all things are worthless.”1

So when Ursula K. Le Guin recently quipped at the National Book Awards, “I see a lot of us, the producers accepting this — letting commodity profiteers sell us like deodorant,” one has to wonder how enthusiastic that crammed room full of applauding deodorant slanderers would have been had none of them been wearing deodorant.

And, the remark stank beyond its implied dismissal of products engineered to overcome human body odor.

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Amazon’s antagonists are crooks, liars, and Islamophobic bigots

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AppleFrom the New York Times:

A federal judge on Friday approved a settlement in which Apple could begin paying $400 million to as many as 23 million consumers related to charges that it violated antitrust law by conspiring with publishers to raise e-book prices and thwart efforts by Amazon …

Apple initially agreed to pay up to $400 million to settle the class action in June, ahead of a damages trial set for two months later in which attorneys general in 33 states and class-action lawyers were expected to seek up to $840 million …

The suit accused Apple of being a “ringmaster” of a conspiracy with the five major publishers to raise the average price of e-books from the $9.99 price that Amazon had made standard for new e-book releases. Simon & Schuster, HarperCollins and the Hachette Book Group settled the day the case was filed; Penguin and Macmillan settled months later.

Read the rest here.

And, to reiterate, I recognize the economic danger of Amazon’s size, but (a) Amazon is nowhere near a monopoly or monopsony, (b) it was Amazon’s competitor Apple that showed its willing to break the law to the rip off readers, and (c) the Big Five were an economically dangerous cartel long before Amazon’s first 1’s and 0’s hit the Internet, and they prove their intentions to behave as a cartel again and again, to the detriment of readers and writers.

The facts in this scandal make the deluded National Book Awards polemic delivered by Ursula Le Guin, who is otherwise a remarkable advocate for literature, all the more tragic. Continue reading

Passive Guy shows how Hachette is shooting itself in the foot

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jnlThe Passive Voice blog (“A Lawyer’s Thoughts on Authors, Self-Publishing and Traditional Publishing”) has posted an extensive quote from GigaOm on the details of the recent Amazon-Hachette deal.

But, what I found more interesting was the Passive Guy‘s economic analysis of traditional publishers’ myopic and desperate tactics. The bold emphasis is mine:

Since Big Publishing has attempted to use ebook pricing to protect the sales of physical books in physical bookstores in the past, PG suspects it will continue to do so in the future. If this is the case, Hachette ebook prices on Amazon will be higher than Amazon would set those prices if the folks in Seattle had unfettered pricing discretion.

If PG’s suspicions are anywhere close to correct, it appears that indie authors will continue to be able to undercut the price of ebooks from Hachette while earning royalties from KDP that are much higher than Hachette authors receive.

PG says that indie authors are much smarter about pricing ebooks on Amazon than Big Publishing is … Like Amazon, indie authors don’t have any legacy sales channels to distract them from setting an optimum price for ebooks.

Trying to protect a legacy business with legacy margins is a classic mistake that established business organizations make when faced with a technology disruption that allows lower-priced competitors into a marketplace. Doing so allows the lower-priced competitors to survive and thrive. And eventually put the legacy model out of business.

Check out the rest at The Passive Voice.

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Now that Amazon and Hachette have signed a contract…

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mytwocentsI suppose I should say something now that Amazon and Hachette have ended their dispute by signing a multi-year contract. After all, I’ve had plenty to say about it up to this point.

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Could Melville House’s incessant whining about Amazon become any more unprofessional?

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The latest anti-Amazon tantrum over at Melville House has really taken spin and smug self-delusion to new heights: Continue reading

Moving to cubicles is the latest sign that traditional publishing is ass backward

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picard-face-palmBusinesses have a bad habit of backing themselves into corners. For example, the way traditional publishers backed away from their promotional responsibilities, pressuring all but a tiny bestselling minority of authors to run themselves ragged promoting their own books.1

Build a platform! Engage your audience! Brand your work! Do a marketer’s tasks instead of writing!

As it turned out, promotion was one of only a few contributions traditional publishers made to an author’s career. Once online resources (including networking between writers, editors, and cover artists) eliminated the other “middle man” contributions of publishers, there really wasn’t much of a role for traditional publishers among authors who, driven by marketing neglect, had already trained themselves to be self-promoters.

And now one of those traditional publishers, the bumbling and stumbling Hachette, is backing itself into a physical corner by adopting the cheapskate “open office plan” architecture (read: low-walled cube farm) despite the massive flaws researchers have discovered about this set-up. Continue reading

Another Amazon-Hachette dispute trope that needs demolishing

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picard-face-palmAmong the raging hordes who set aside all facts and reason to bash Amazon in what I can only guess is a spooked panic about the retailer’s size (something that concerns me, too, but not to the point of losing my mind) there is a prevalent slander, which was recently repeated by Cosmin Gheorghe at the ever-flowing spring of spin that is the Huffington Post:

Amazon considers books a commodity, like cars or computers: an object that has no other inherent value, but only the value dictated by how often it is demanded or offered by the majority of us, i.e., the market.

This statement is moronic on two fronts.

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Wednesday full of publishing woe

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Wednesday(I’ll be traveling to St. Louis Wednesday, so I’m prepping this edition Tuesday evening.)

According to the poem, “Wednesday’s child is full of woe.”

Today’s sample of stories fits the bill.

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Lee Child doesn’t understand arithmetic, economics, or the book trade

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Picard-FacepalmI understand that Amazon’s size is a problem for the marketplace. I am a strong antitrust advocate.

However, I also understand being the biggest guy in a fight doesn’t categorically make you the bad guy. Most importantly, I understand that spreading lies and logical fallacies, however well-intentioned, is toxic to the integrity of public discourse and therefore hurts everyone in the long run.

A lot of Amazon’s critics don’t seem to understand those last two critical facts.

For example, thriller writer Lee Child has been getting a lot of press lately for a BBC Newsnight interview in which he tries to dismantle Amazon’s position in their dispute with contract-fumbling, deadline-bumbling Hachette. But, when you take a close look at his logic, if you can call it that, not only does it fall apart but it displays a remarkable lack of basic knowledge and reasoning.

Specifically addressing Amazon’s arguments about the economic efficiency of selling ebooks at lower prices, Child calls Amazon’s claims “disingenuous,” then sneers:

There is a very specialized branch of science that you can examine these propositions with. It’s called arithmetic.

Let’s remember that Child is invoking disingenuousness and arithmetic. They’re the ropes with which he’ll hang himself. Continue reading