So now Amazon is ISIS. What a bunch of rubbish. Here we are with more of that ‘new civility’ we were encouraged to remember for five minutes. But only the people in opposition to the Leftist Operatives With Bylines must comply with. http://pjmedia.com/lifestyle/2014/10/31/who-is-the-real-monster-in-publishing-a-halloween-tale/ No, I’m not linking to the Telegraph original. They do not deserve the hits.
Amazon is a business. They do what they think will make them long-term profit. Period. Now, I will conceal nothing from you: I do not know how a business bleeding hundreds of millions of dollars a quarter can sustain its existing operating model. I know enough about both economics and math to understand that is not sustainable losses for anyone who is incapable of legally printing tender. That said, if Hachette wasn’t hemorrhaging as well, Agents, A-list authors (the only ones who would lose if Hachette passed away) and their media allies wouldn’t be rushing to their aid. I do *not* think Amazon can go on indefinitely paying 70% to the e-book author. I also do not believe for a second publishers give a flying carp about raising THEIR royalty rates. They’ve been making themselves fat off saying they’re necessary while doing less for so long they don’t know how to live on less than 90% of the take. And given they want to place e-book prices at artificially high rates, so that you’ll keep buying dead trees, you can bet that if it isn’t Amazon, it will be someone else undercutting their share. Because the jinn is out of the bottle, and there is no chance of going back to the 20th century scalping model publishers loves and the rest of us endured.
We learn that
1) Hachette is VERY bad at math.
2) Amazon is being asked to take LESS than the 30% share they were being forced to take when Hachette was involved in an illegal price-fixing scam. Oh wait, they’ve been dropping lie/hints saying Amazon wanted 50%…when they didn’t.
3) Hachette is, of course, underpaying its authors on E-books. But we knew this already.
4) Hachette wants e-books priced higher than print, even though they already did the work for the print version. Oh wait, that means fewer e-books will sell, which means less total money for *everyone,* because fewer total sales by a larger percentage than the price drop.
5) Hachette must have some *very* bad accountants to be fighting this deal. And all the abused authors siding with them need to take some basic math classes. Because Amazon is flat out the one making sense. You like your editor, fine. Tell your editor to talk to the accountants.
Oh, and the money Hachette has spent on this little spitting match is money they could’ve spent doing silly things like making a profit. But being French, they probably think the Government will subsidize their failure.
Link provided for fact checking, where Business Insider agrees Amazon destroys Hachette: http://www.businessinsider.com/amazon-hachette-ebook-pricing-2014-7
You know, I’ve come to the conclusion that the entertainment industry is populated by the only group of semi-educated people on earth who both:
1) Have no freaking comprehension of how market economics works. And
2) Still make money, despite their incompetence at managing said system.
Of course, I would add that their lack of intuitive grasp of the Law of Supply and Demand is beginning to have consequences. Especially with the new realm of Indie Creators and small marketeers eating away at their profits.
Which is, of course, at the heart of why a bunch of .001% authors can suffer Amazon Derangement Syndrome, claim a boycott is happening when it isn’t, and then duff around while their publishers–who artificially inflate the prices on e-books–continue to tell them stories about how Amazon is cheating them. This despite the fact Amazon has specifically promised to compensate THEM for any losses.
Note, this means authors are complaining because their publisher is abusing them, and they are complaining to the party that is actively trying to compensate them fairly.
Yeah. GET A CLUE. https://www.techdirt.com/articles/20140703/13251627775/one-percent-authors-want-to-end-destructive-conflict-bring-order-to-galaxy.shtml
Before you believe the media, check the facts.
Authors are getting screwed. I do NOT like that. But some authors seem to have Stockholm syndrome with their Publisher. They can’t bring themselves to admit Hachette was gouging them all along…despite Hachette being successfully prosecuted by the DOJ. Hmm…
JA Konrath gives a thorough fisking of the ‘conventional’ argument here. Fact: The more I read, the more I find AMAZON in the right. Folks, this is business. And Hachette ain’t a white knight.