Macmillan vs Amazon
For those who don’t follow publishing news, Macmillan and Amazon entered a bit of a book war. Macmillan wants to price their Kindle books higher than Amazon’s normal price point. Amazon, in retaliation, pulled all Macmillan titles from their catalog. It looks like Macmillan might win themselves a delicious Pyrrhic victory.
Macmillian is being greedy, and it will destroy them. First, Macmillan reduced author royalties for e-books below industry standard. Then they raised prices above industry standards. Let me put on my precognition hat and see if I can predict the future here.
Their best-selling authors will want a fair deal and either take their next books to another publisher or refuse to sell e-book rights and just put the e-books out themselves. That takes about a half a day’s work total. Those with a first refusal rights clause in their contract with submit drivel that will be refused, thus terminating that clause. The midlist authors may be nervous about jumping ship, but the big fish, the ones who bring in the big bucks, will have no such compulsions to stay.
If the authors decide to sell their e-books on their own, Amazon will gladly link the version exactly the same way they do now. They’ll say they’re helping authors. They’ll say their being customer-centric. They’ll just make more money that way.
E-book readers won’t decide to buy Macmillan hardcovers if Macmillan e-books are too expensive; they’ll decide to buy someone else’s e-books instead. Publishers already have a tremendous amount to compete with. There are not only other publishers, there is television, movies, the Internet, podcasts, podiobooks, video games…the list goes on. Publishers can either put out a great product, priced to sell, or watch their business crumple.
Macmillan is being sadly future-phobic and I fear what it will do to them, and to their excellent stable of authors. I only hope the rest of the industry can pick up the talented writers when Macmillan falls.
Add comment February 3rd, 2010