The Shatzkin Files - Latest Comments in One brave publishing executive speaks out on ebook pricing, and we comment

Re: One brave publishing executive speaks out on ebook pricing, and we comment

Doug — Sun, 12 Sep 2010 18:44:56 -0000

I'm interested in the anti-trust aspects. Are we looking at a Explorer redux? How are novels and textbooks, that contain a vast amount of the information/quoteable material of the internet able to be monopolized, when Freedom of the internet is so often touted? The idea of a public library seems lost to those that don't have the right e-book library card, that isn't free by any means.

Re: One brave publishing executive speaks out on ebook pricing, and we comment

The Idea Logical Company — Wed, 23 Sep 2009 07:47:07 -0000

First of all, each consumer should make his or her own decisions, including the decision to organize others.

But publishers know that when they charge a higher price, they get fewer customers. Their objective is to maximize revenue; that's their job. If the number of customers goes down less than the price goes up, they've done their job.

AND let's remember that prices are really set by retailers, not by publishers. Those $9.99 books you're getting are thanks to Amazon or B&N, not to the publishers. And they can also decide NOT to subsidize a title, in which case you'll pay more (IF you buy, of course.)

Re: One brave publishing executive speaks out on ebook pricing, and we comment

Dan Holloway — Wed, 23 Sep 2009 03:21:45 -0000

Mari, I agree this is ridiculous. But one thing you CAN do with an e-reader, even in this climate, is discover some amazing new Indie talent that's happy to use e-books as a free giveaway to showcase their work. There are many sites on the web like Finding free e-books, ebook just published, and smashwords, where you can discover some fantastic new authors for nothing.

Publishers take note - as readers get hold of the idea that free doesn't mean bad, and start discovering great talent for themselves, groups of entrepreneurial writers are going to start exploiting the freemium model and emerging as players in the next phase of publishing

Re: One brave publishing executive speaks out on ebook pricing, and we comment

Mari — Wed, 23 Sep 2009 01:56:12 -0000

I have an issue that publishers like Macmillan are asking ebook readers to pay $14.99 retail for a paperback that costs $7.99 retail. It's appalling. Are we consumers really buying these ebooks at almost double? I hope not. We should be boycotting and send mass emails to publishers like Macmillan...and I'm spreading the word. I got my reader because I read a lot and it’s incredibly convenient for me. Now, I’m being punished for not killing trees and wanting to carry 20 books around with me wherever I go. Since I’ve purchased my reader (2 years ago) I actually buy more books and the thanks I get is the insult that they expect me to pay almost double.

Re: One brave publishing executive speaks out on ebook pricing, and we comment

Mike Shatzkin — Mon, 14 Sep 2009 08:05:54 -0000

So many may be offered on the Kindle and the quality of much of the rest
might be crap but a) Amazon doesn't promote anything like 1 million titles
available and b) makers of new readers (who are selling to a much less
sophisticated public than those that bought the FIRST batch of readers) will
make a point of how many titles you can load on it than you can't load on
the Kindle.
Your point about "first major mover" is also true of Amazon. They weren't
first any more than iPod was.

But I think Kindle is going to be caught up in a format change. Think
Betamax.

Mike

Re: One brave publishing executive speaks out on ebook pricing, and we comment

BrentNewhall — Sun, 13 Sep 2009 15:32:15 -0000

Interesting post! A few notes:

I personally don't see the Google move as a "huge thumb on the scale," as so many of the books that they offer are already available for the Kindle. Kind-hearted folks have been posting free, public-domain books to the Kindle Store ever since it was opened to the public. As an active member of the official Amazon Kindle Forum when the Google deal was announced, it was met with a collective yawn. No Kindle owners were interested; they had been reading those books on their Kindles for months.

I'm also a little leery of predicting the future of anything, much less this dynamic market. It means a lot to be the first major mover in a space. To use a different example, look at the iPod: it wasn't the first, but it offered the superior user experience. Others came after it. It still dominates the market today.

Not to say that this will necessarily happen with Kindle, of course. Who ever knows?

Re: One brave publishing executive speaks out on ebook pricing, and we comment

Mike Shatzkin — Tue, 08 Sep 2009 07:49:02 -0000

Max, the statement about publishers controlling their ebook pricing puzzles
me as much as it puzzles you.
The US Amazon pricing won't be available in the UK. What will be interesting
will be to see what Amazon's pricing strategy is in the UK. When they
started selling Kindles in the US, there was no competition. It's a
different situation.

Mike

Re: One brave publishing executive speaks out on ebook pricing, and we comment

maxguevara — Tue, 08 Sep 2009 05:12:08 -0000

I partially agree with you, Mike. The thing is, although there are no Kindle sales in the UK territory yet, many UK publishers have subsidiaries in the US and even those who don’t can go into an agreement with Amazon to have their eBooks distributed there, and I believe this will impact on the pricing of their eBooks overall.
Btw, yesterday I read a statement by Dan Franklin from Canongate that really puzzled me: ‘“with e-books, publishers are calling the shots— through metadata, we price it one way and that’s the way it’s sold”’. I don’t know what he means since most of the eBook retailers are not bound to charge the end consumer the rrp that is informed in the metadata. I would be interested to know what you think.
M.

Re: One brave publishing executive speaks out on ebook pricing, and we comment

Mike Shatzkin — Mon, 07 Sep 2009 13:06:02 -0000

Max,
I think the reasons for objections are different in the US and UK. In the
US, it is clearly illegal to discuss price with a competitor. What the CEO
who commented to me was saying was that discussing it with me, since I talk
to all the competitors, could amount to the same thing.

The situation is different in the UK because the publishers there are not
faced with a near-monopoly player in the ebook space such as Kindle is in
the US. That's a mixed blessing, because the Kindle presence -- threatening
though it is in many ways -- also really jump-started the US ebook market.
And that hasn't happened yet in the UK. But with the iPhone, a coming
Kindle, and a plethora of other devices to feed off a big epub title
reservoir, the jump-start might happen without a monopoly player and that
would actually be much better! And perhaps worth waiting for.

Mike

Re: One brave publishing executive speaks out on ebook pricing, and we comment

jcrharris — Mon, 07 Sep 2009 12:13:51 -0000

One of the interesting discussions. Gilbert and Sullivan understood it with the lines, roughly, 'you are right and he is right and all is right as right can be'.

What is most evident is the extent to which publishing is going to be splintered, with technology enabling many more options. All the examples discussed above are successful options, but each with its limits.

Like traditional publishing the mix of activities is not much different; it is the scale on which they are done that contrasts with the past. One factor that is becoming quite evident is that the statistics of sales gathered and published are missing an ever-growing band that publishes POD and ebooks in quite non-traditional ways.

The activities of Amazon, Google and so on mostly mimic other, older models. For 'every book you can think of' who remembers Foyles in Charing Cross Road in London? Book retailing in large units, mail order, free samples? Nothing new, just adapted.

And I think there is a major misunderstanding about the conflict between the ebook and the print book. This stems from the issue of reading from a screen; a minority sport? I don't think so.

Today there are few that do not do more actual reading from a screen than they might ever have done of paper. The internet has introduced major portions of the populations to monitors - only a small jump from TVs after all. Add all the small screens and the day of the screen is already here.

It is significant that, allowing for the effects of the downturn on all figures, sales of print books has held up better than the majority of products. And if you examine the POD market you will see a growing 'underground' there too. For proof of the known change check the number of titles in US in 2002, and in 2008. I saw a five-fold increase.

Of course the ebook is going to rise and flourish. Many love the portability and availability. Equally the evidence or logic that the print book will disappear is scant. It is reading as a whole that will grow.

And I pretty much guarantee that publishers will continue into the distant future, but more like those of 60 years ago than the corporate disasters of finance management.

Writing, reading and publishing look to me like glowing lights in a grim decade ahead.

Re: One brave publishing executive speaks out on ebook pricing, and we comment

maxguevara — Mon, 07 Sep 2009 10:16:32 -0000

Hello Mike,

I totally share your frustration. Some months ago I tried to start a debate on eBook prices with a couple of UK publishers and was totally discouraged by one of them, a very preeminent figure, who said the same thing: ‘nobody would want to talk about pricing policy with competitors’.
I think this is a real shame. Everybody in the publishing industry is together in the same boat: currently facing huge technological changes and powerful (and sometimes extremely bullish) companies, such as Amazon, that won’t think twice before squeezing publishers in order to increase their presence in the eBook market. This is the moment when publishers should get together and think strategically as a sector that is going through profound transformations.
Totally agree with you when you say that ‘Epub is probably the publishers’ best defense against Amazon and the Kindle’. This will be very interesting to watch… and be a part of.

Re: One brave publishing executive speaks out on ebook pricing, and we comment

Mike Shatzkin — Fri, 04 Sep 2009 13:28:06 -0000

I'm aware of Baen because, indeed, they HAVE been doing this for a long
time, but because I'm not a sci-fi reader, obviously not ENOUGH aware of
Baen. Thanks for helping my blog readers overcome the holes in my personal
knowledge.
Mike
Mike
--------------------
Mike Shatzkin
http://idealog.com/blog
mike@idealog.com
Founder & CEO
The Idea Logical Company, Inc.
Co-founder: Filedby, Inc.
212-758-5670

Re: One brave publishing executive speaks out on ebook pricing, and we comment

boballab — Fri, 04 Sep 2009 13:07:20 -0000

Well one publisher had the vision long ago about this: Baen Books. Baen Books offers their ebooks in three different versions. The first is that they sell electronic Advanced Reader Copies (eARC) for $15, months before the Hardcover comes out. So you pay slighly higher then the norm to get a 3-5 months jump on anyone buying paper. These eARC's are the authors final submital to the publisher just before final editing. The second method is that when the paper version comes out they replace the eARC with a polished final version for a price of $3 to $6. The third version is a serialized service called webscriptions that give you 5 ebooks for $15. All of their ebooks are DRM free and in multiple formats. The other thing is you can read free sample chapters on their webscription site before even buying the book. So when you buy an ebook from them you really own the thing and can move it around as you please. The downside is they are primarily a SF/Fantasy publisher. They also have their own Free Library where you can get ebooks, typically the first couple in a series, for free.

Re: One brave publishing executive speaks out on ebook pricing, and we comment

Mike Shatzkin — Thu, 03 Sep 2009 22:46:11 -0000

Thanks, Robin. I think agents re-thinking their role is one of the most
important components of the value chain change for "writerly" work in the
years to come.
Mike

Re: One brave publishing executive speaks out on ebook pricing, and we comment

Christine M. — Thu, 03 Sep 2009 22:41:50 -0000

Those people must never have read the Lord of the Rings Omnibus mass market paperback then! Seriously, I'm fine with the idea of a vast choice of devices of all sizes offering all sorts of options being available on the market. Everyone has a very precise idea of what they're looking for when they shop for anything electronic (or even cars, for that matter). Plus, the more options there are, the cheaper they'll turn out to be.

Re: One brave publishing executive speaks out on ebook pricing, and we comment

Robin Mizell — Thu, 03 Sep 2009 22:39:40 -0000

You're right, and what you suggest we do is already happening with clients' out-of-print titles. The "best" option today, however, will be obsolete tomorrow.

It's great to be new to the business at a time like this. However, I didn't intend to evolve into a publisher. A concierge, maybe. Thank goodness for talented friends.

Mike, I hope to make it to your Digital Book World conference. Thank you for your transparency, influence, and thoughtful predictions.

Re: One brave publishing executive speaks out on ebook pricing, and we comment

Mike Shatzkin — Thu, 03 Sep 2009 22:13:04 -0000

Christine, I think we're about to see a proliferation of devices and we'll
be reading on all of them. My own hunch is that today's Kindle will look as
quaint as a Commodore 64 by about three years from now. There are so many
variables: backlit or not, quality of color, connected or not, battery life,
screen size...and all of us use devices for different combinations of tasks.
Your own instincts seem close to mine; I read books on Palm Pilots 10 years
ago and just gave up the Kindle for the iPhone over the last six months. But
a whole lot of people who read on Kindles and on laptops can't understand
reading on a small screen. To each her own.
Mike

Re: One brave publishing executive speaks out on ebook pricing, and we comment

Christine M. — Thu, 03 Sep 2009 21:51:02 -0000

A 10" notebook, the 9.7" Kindle DX, the 10" Apple iPad.... all the same to me. To begin with (and here I speak of my personal preferences, I am in no way speaking for anyone else), I wouldn't spend $500+ on a dedicated reader. Sony's new eReader Touch and Pocket Editions are just dandy (or the Cool-er for that matter, when it'll regularly be in stock at their website--and it's quite cheap, too), if you ask me. Carrying around a 10" device would be a pointless burden to me, since even a HC book (which i rarely buy anymore) would be smaller, size wise. I won't go over 6 inches, which is portable. I already have a 'portable' laptop (15.4" widescreen, 6 lbs) so I don't need anything that much bigger than a mmdb, since I would be able to carry it around easily. I used to write in the bus and/or the Tube but I would write in a notebook. Again, I don't see the interest of writing on a 10" notebook in my lap during rush hour. But then, to each their own. Personally, I all I need is a not-to-expensive device that will read books and that I won't have to charge every day or so (which what my friends owning iPods Touch/iPhones have to do since they use their device quite a few hours everyday). I already own an iPod (Nano), a laptop, etc. I just need a reader.

Re: One brave publishing executive speaks out on ebook pricing, and we comment

Mike Shatzkin — Thu, 03 Sep 2009 21:42:02 -0000

Authors who can run a business for themselves are the big winners. Authors
that wanted to write in private and let the world take care of them -- and
who could write material that people wanted to buy -- are not. Authors are
going to have to create their following in ways they were not asked to do in
the prior regime.
Mike

Re: One brave publishing executive speaks out on ebook pricing, and we comment

PublishMarket — Thu, 03 Sep 2009 20:57:04 -0000

I totally agree that Kindle dominance is something to be dreaded. For example, in the print-on-demand industry, Amazon made a good deal of money from carrying everyone's books, self-published POD or not. Then they bought Booksurge and suddenly were strong-arming publishers and authors that unless they let Amazon print their books, they wouldn't be carried. That may not sound so awful except that Amazon charged for their services, and not a little fee, and the industry as a whole thought the Booksurge quality wasn't up to snuff. That's why they didn't opt for Booksurge in the first place. There's a class action suit against Amazon for just this policy. It's perfectly reasonable to think them capable of a like action when it comes to Kindle, particularly when they "steal purchased books off in the dark of the night." Of course, the clash of the titans is being waged now between Amazon and Google over the public domain titles.

And you are absolutely right that iPhones do read in color now - I have no fewer than five apps on mine right now that do just that. I'm still banking on the Apple tablet rumor, though...some are even saying it will have a cell chip and may be the hushed reason they denied Google their voice app use.

One thing is for sure...authors are the big winners. As the markets divide, there will be less competition and far more options, particularly when you look at the bottom line royalty. So, no matter which medium you use, communication and entertainment are becoming just that much more elegant and convenient. Publishers will, indeed, need to re-examine their role in the supply chain and give a bigger bang for the buck.

Re: One brave publishing executive speaks out on ebook pricing, and we comment

Mike Shatzkin — Thu, 03 Sep 2009 19:41:05 -0000

I don't know about Christina, but I wasn't "scoffing" at multimedia books. I
was saying I personally had no interest in them and I emphasize that I have
no idea how representative I am of the public at large. Good luck with
inventing a new art form that takes hold.
I agree that Apple's rumored tablet will, depending on pricing, make a
Kindle look very expensive for what it is. But there are actually a variety
of device manufacturers out there all making machines that will handle epub
files. Any number of them could end up making something comparable to, but
better than, Kindle.

We're capable of reading plenty of color now with iPhones. There will be
more complex multimedia books generated because of iPhones.

And I'm well aware that Amazon is selling ebooks at a loss. I believe there
are new deals in place that compel the publisher to share the discounts
offered to consumers, but the details of these deals are generally not
discussed and leak out only anecdotally. What I said is that publishers fear
that Amazon will, at some point, try to use their dominance in the market to
force publishers to give them lower pricing. Kindle sales, at the moment,
are a huge proportion of ebook sales. If they were to stay that way, that's
a realistic fear. That's what Arnaud Nourry was taking about in the piece I
blogged about.

Mike
--------------------
Mike Shatzkin
http://idealog.com/blog
mike@idealog.com
Founder & CEO
The Idea Logical Company, Inc.
Co-founder: Filedby, Inc.
212-758-5670

Re: One brave publishing executive speaks out on ebook pricing, and we comment

PublishMarket — Thu, 03 Sep 2009 19:15:17 -0000

Actually, the publishers did set the prices on their eBooks - but Amazon sold many of the titles at a loss in order to build their catalog. So, if the publisher's portion was to be $12.00, they got $12.00 regardless of where Amazon priced it.

And replying to the earlier post wherein Mike and Christine scoffed at multimedia books, you may not be seeing the bigger picture. First of all, consumers are already getting tired of having dedicated devices that still preclude them from all the titles available. There is not one format that is common to all the readers. Epub format offers very little formatting so all the beautiful typography is lost. At the same time, they are all migrating toward accepting .pdfs and color screens will be the next generation. Reading on the typical laptop may not be for everyone, but there are touch screen models which rotate and Apple is rumored to be debuting a tablet with touch screen and virtual keyboard in the very near future. Why would anyone spend $500+ for an eReader when they could buy a laptop for the same price? Not to mention that Adobe Reader is resident on over 98% of the computers in use today.

And Christine, while your books may be just fine as they are, there are creative writers who embrace the opportunity to communicate with multimedia. I'm not sure where your definition of 10" notebook ends and the 9.7" Kindle starts -- but I can't see that .3" as the cutoff for portability. On the other hand, you can write one of your books on the notebook, but you can't on the Kindle. Hmmmm....

Re: One brave publishing executive speaks out on ebook pricing, and we comment

Mike Shatzkin — Thu, 03 Sep 2009 16:42:06 -0000

I don't believe you know what Amazon's deals are except for your deal. I
certainly don't.
But what publishers are afraid of, even if they are getting 50% of the
retail price they set (which is more than you're getting) is that Amazon
will gain enormous leverage with 70-80% of the ebook market thru Kindle and
will then dictate prices. And if the market share were to stay that way,
that's a reasonable fear.

Mike
--------------------
Mike Shatzkin
http://idealog.com/blog
mike@idealog.com
Founder & CEO
The Idea Logical Company, Inc.
Co-founder: Filedby, Inc.
212-758-5670

Re: One brave publishing executive speaks out on ebook pricing, and we comment

Mike Shatzkin — Thu, 03 Sep 2009 16:41:11 -0000

Christine, my taste is the same as yours. If we're an accurate barometer of
public taste, the whole multimedia ebook thing will fall as flat as CD-Roms
did 15 years ago. We'll see.
Mike
--------------------
Mike Shatzkin
http://idealog.com/blog
mike@idealog.com
Founder & CEO
The Idea Logical Company, Inc.
Co-founder: Filedby, Inc.
212-758-5670

Re: One brave publishing executive speaks out on ebook pricing, and we comment

Guest — Thu, 03 Sep 2009 09:05:17 -0000

I publish on Amazon and am a bit confused.

Amazon doesn't set the prices for e-books. The publisher/author does. Amazon receives 65% of that price, the publisher/author 35%.

Kindle owners were the reason behind that $9.99 price; Amazon had advertised to that effect and Kindle owners were growing upset at the number of new e-books coming out (from traditional publishing sources) that were priced at only a couple of dollars less than the hard cover versions, so they instituted the 9.99 boycott.

The only time Amazon has anything to do with an e-book's price is when it goes on sale. Even then, the publisher/author receives their full 35% of the original price. Amazon takes the 'loss'.