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TwitterIn a pricing dispute that had been brewing for over an year now, Amazon.com (NASDAQ: AMZN) has removed all books from Macmillan, one of the largest publishers in the United States. The publisher’s books can only be purchased from third parties now.
People in the industry on condition of anonymity claim that Amazon was expressing strong resentment by this (hopefully) temporary removal of books. Macmillan’s imprints include popular books such as ‘A Long Way Gone’ by Ishmael Beah, ‘Wolf Hall’ by Hillary Mantel and ‘Finger Lickin’ Fifteen’ by Janet Evanovich.
The bone of contention is two fold. One, Amazon’s overwhelming market share in ebooks, which grants it monstrously high bargaining power as compared to the publisher and two, the establishment of $9.99 as the price of a book, which publishers feel grossly undervalues the content. Amazon Kindle, is a software and hardware platform designed for rendering and displaying e books and other digital media; and the publishers make no bones about their dislike for Kindle pricing. (Hardcover books go, for up to $30).
Amazon to Macmillan - and you're done !
Macmillan has also been signed to offer books to Apple, as a part of the new iBookstore on the iPad tablet, which was launched earlier this week. Apple persuaded five major publishers to back the creation of a new e-book store, with prices pitched higher than the $9.99 for bestsellers popularized by the Kindle. This in turn suggests that publishers wish to use iPad to gain control of the digital prices of books. But of course, it can’t go on this way. There will have to be a way out, and soon, since the iPad hits stores next month. Otherwise, given that iPhone’s Kindle application will be on the iPad, consumers will have the choice of paying two different prices for the same book on the device. That isn’t likely to suit Apple or the publishers. Besides, it is not clear yet if publishers can withhold books from Amazon while giving them to other parties like Apple. Antitrust lawyers said it could raise legal issues.
The point which to be reiterated is that, Amazon has plenty of negotiating power, and US publishers can’t possibly withhold books from the e-tailer. At best, they can give Apple e-book titles earlier than Amazon.
Macmillan and its imprints have not yet returned requests for comment. Amazon too, refused comment.
Well, seems like mum’s the word(ict).
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