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Ernest Miller
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Elizabeth Rader
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Wendy Seltzer
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Alan Wexelblat
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About this weblog
Here we'll explore the nexus of legal rulings, Capitol Hill policy-making, technical standards development, and technological innovation that creates -- and will recreate -- the networked world as we know it. Among the topics we'll touch on: intellectual property conflicts, technical architecture and innovation, the evolution of copyright, private vs. public interests in Net policy-making, lobbying and the law, and more.

Disclaimer: the opinions expressed in this weblog are those of the authors and not of their respective institutions.

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Copyfight, the Solo Years: April 2002-March 2004

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In the Pipeline: Don't miss Derek Lowe's excellent commentary on drug discovery and the pharma industry in general at In the Pipeline

Copyfight

« Duplitecture | Main | And No Kill Switches, Either »

August 5, 2014

Uncle Amazon Knows What's Best for You (and Itself)

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Posted by Alan Wexelblat

It's been a while since I peeked in on the ongoing slog of Amazon versus Hachette. A story from Jillian D'Onfro appeared last week, explaining what Amazon says it's up to in this fight.

Amazon appears to be making a numerically based claim, in two forms. First, it is arguing for a 35 (author) / 35 (publisher) / 30 (Amazon) revenue split. It points out that 30% is what Apple and its co-conspirators wanted Amazon to take. Second, it argues that its data show a price point of USD 9.99 is better for an e-book in that it leads to more copies being sold. The number of additional copies sold is high enough to more than make up for the revenue lost on each individual sale.

This is pretty transparently an effort to recruit authors to Amazon's side. Big-house authors generally get around 20 or 25% on e-book sales and Amazon would much rather have authors complaining to Hachette about "why am I not getting 35%" than complaining to readers that Amazon is making it hard to get the authors' books.

It's also pretty transparently an Amazon-centric view of the world, to which I think John Scalzi has a very solid answer in his "Whatever" blog entry:

Amazon’s assumptions don’t include, for example, that publishers and authors might have a legitimate reason for not wanting the gulf between eBook and physical hardcover pricing to be so large that brick and mortar retailers suffer, narrowing the number of venues into which books can sell. Killing off Amazon’s competitors is good for Amazon; there’s rather less of an argument that it’s good for anyone else.
Furthermore, their math about selling more copies might be true for Amazon itself, but there's no evidence that it holds up for any other retailer. Making Amazon prices so cheap that other outlets can't afford to match them is, again, good for Amazon but not necessarily good for anyone else, including those authors Amazon is trying so hard to influence.

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