Fight Night: Amazon vs. MacMillan vs. Apple ?
No Saturday Sound Off today…. too much news to post about! Before I get to the explosion of ebook drama all over twitter today, I had saved up a few reaction posts to the Apple IPad I wanted to share. First – the IPad? Really? *sigh* I am an apple fangirl, but even I can’t swallow that name and say it with a smile.
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Kindle vs iPad is an easy decision because these are very different devices built for two distinct sets of customers.
So is the iPad a Kindle killer? No. And it probably won’t make a dent in Kindle sales. The people who are going to buy an iPad are most likely not the people who would buy a Kindle.
It’s far more likely, in fact, that the millions of iPad buyers over the coming months will include very large numbers of people who will use their iPads to buy books from the Kindle Store. The bottom line is that by the end of this year there will be over 5 million Kindles and, I suspect, just as many iPads, and those numbers together will mean over 10 million people for whom the Kindle Store provides the best selection and best pricing for their ebook purchases.
“If you like your kids, get them an iPad so they can play games,” said Russ Wilcox, the head of E Ink Corp., which created the digital paper technology used by the Kindle and many other e-ink-based readers. “If you love them, get them an e-reader so they can actually read.”
Now that we have the initial Apple IPad reactions out of the way, let’s get to the ebook drama that exploded on the web last night and continued over to this morning. A condensed timeline of events:
So what does this all mean? For the time being if you own a Kindle, you can not purchase books published by any author under the MacMillan name. Additionally, you can not buy new copies of these books from amazon.com unless you are willing to go through secondary sellers.
Many seem to be jumping to attack Amazon.com for being a bully or throwing a tantrum, yet I want to point out, it seemed obvious from Steve Jobs’ comments that book publishers were getting ready to do exactly the same thing. Withhold books in an effort to get what they wanted, higher e-book pricing. Amazon simply beat them to the punch, instead seemingly taking the consumer’s side on this one and saying NO. That is not to say that Amazon is doing this for the good of you and me, lets be realistic…. they are all about profits as much as publishers are. They are just more in the know with how to make profits from Kindle users….. we buy more books when they are priced lower and easily accessible. Pulling the sales of print books in addition to kindle books may seem like an unrelated move, but we must remember that Amazon sales volume is their negotiating tactic in this.
Being a Kindle lover, I find myself siding more with Amazon on this. This issue ties in with my previous post about publishers making users wait for Kindle releases. Once again I find myself thinking, major book publishers simply do not understand their various customer bases. I will not pay 14.99 for a new release, even if the print is hardcover, to read on my Kindle. Not when they still come loaded with overreaching user agreements and the horrible atrocity known as DRM. If you give me an ebook that I can own, transfer to any device I want, resell, and be able to lend in some way…. then I will happily pay “dead tree book” pricing for that ebook. Until then, 14.99 or more for an ebook is overinflated and unjustifiable.
Have I spent that much on e-books in the past? Absolutely… for authors I love and don’t want to wait for. But those are rare instances and if all e-books were that price you would loose a great many sales from me. Especially when I can head over to Fictionwise.com and MBaM and get great authors like Moira Rogers, Keith Melton, and Josh Lanyon for far less than that… and without DRM. Lower priced e-books give readers the chance to try out new authors without worrying about spending too much, without risk! Publisher’s need to figure this out and run with it. I can not even begin to understand why they don’t have someone in their marketing department who does not see e-books as the death of the publishing! Author Carolyn Jewel nailed it on the head with this:
Publishers need to hire someone who actually understands technology. Someone who grew up with it or enthusiastically threw themselves into it when the world changed. And it did, people, it did. And then they need to actually LISTEN to that person. Any C-Level employee who didn’t personally take a look at Twitter when the buzz started is automatically disqualified from this position.
The sad part about this entire situation is that the readers and authors are the ones stuck in the middle and ultimately taking the most harm. Just as we readers aren’t able to buy books at a reasonable price from Amazon during this time, authors are going to lose a what I imagine is a large chunk of royalties from Amazon sales. Let’s all cross our fingers that Amazon and MacMillan find some way of working this out quickly.
Update
While I was writing this post, there was an update to this article about the situation.
Motoko Rich, my colleague, spoke with a person who had a direct conversation with a person at Macmillan familiar with the conversations with Amazon. Macmillan offered Amazon the opportunity to buy Kindle editions on the same “agency” model as it will sell e-books to Apple for the iPad. Under this model, the publisher sets the consumer book price and takes 70 percent of each sale, leaving 30 percent to the retailer. Macmillan said Amazon could continue to buy e-books under its current wholesale model, paying the publisher 50 percent of the hardcover list price while pricing the e-book at any level Amazon chooses, but that Macmillan would delay those e-book editions by seven months after hardcover release. Amazon’s removal of Macmillan titles on Friday appears to be a direct reaction to that.
There now appears to be confirmation of this here.
Wow. *shakes head* I’m Team Amazon.
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Very well said. I hope this is resolved very quickly since the big losers are the avid Kindle readers who are without access to the major publishing house: MacMillan. (that’s me, by the way)
KindleKay´s most recent blog post ..Snow Day….
WOW!! Check out that avatar!!!
KindleKay´s most recent blog post ..Snow Day….
Hmm. The iPad – for people who have a heavy work flow.
Ha ha ha ha.
I think all of this is going to lead to more pirated copies of e-books. I really appreciate what Amazon is doing (even if it’s purely for profit versus customer service) but if the likes of Macmillan and Apple get their way I think consumers will simply turn to illegal downloads.
Great, informative post. Thanks.
Danielle´s most recent blog post ..‘The Surprise of his Life’ by Karen KEAST
Great post! The people who are going to get the short end of this battle are the readers. I love that Amazon offers free books. I’ve discovered many new authors. And there’s no way I’d pay 14.99 for an ebook. I barely want to pay 9.99! I’ve never bought a hardcover book because I always thought it was too expensive. I would wait for the cheaper paperback. The thing I love about the Kindle is that I can get a new release instantly. It’ll be sad if that’s taken away because the corporations are trying to show who has to biggest “stick”.

Marquetta´s most recent blog post ..My first award!!
You are so techy I love it – I come to you for all the ebook news. What I like about the Ipad ::snicker:: is that you can adjust the font, unlike kindle. I buy a lot of ebooks not through Amazon and me poor eyes strain to the read the 10 point font. Other than that, Ipad doesn’t really do it for me. I’ve heared you cannot run multiple apps at the same time, whoa doozy, perhaps Apple will fix this with Ipad 4.0.
I would like for Kindle to come up the “option” for backlight and font adjustment.
I don’t think Ipad would kill Kindle right? Amazon is still one of the largest online book (maybe even the largest) sources and with ebooks/kidle you can download instantly. I would love if another ereader was compatible with kindle books.
K.C. Smokinhotbooks´s most recent blog post ..Ipad, Procrastination, & Me In A Bikini
*shaking my head at KC* Do you not read your Kindle manual? LOL it has 6 different sized fonts lady! You can indeed adjust them. AND you can also “hack” it to use a different font altogether if you really want to.
I really hope they solve this soon. I want to get an ereader and I am leaning toward the Kindle because I have already bought maybe 20 ebooks from them and now that I can read PDF or convert the PDFs I kind of want the Kindle.
Sarah´s most recent blog post ..It’s Monday, What are you reading?