Showdown Between Macmillan and Amazon Kindle Ends With Removal of Titles
January 31, 2010
(ChattahBox)—Macmillan wants to sell its e-book titles for $12.99 to $14.99 and Amazon wants to keep prices at $9.99, to compete in an increasingly competitive digital book industry. The dispute with publishing giant Macmillan and Amazon came to a head on Thursday when Macmillan CEO John Sargent balked at Amazon’s new pricing model. In response, on Friday, Amazon removed every single title published by Macmillan from its website, as well as from its Kindle e-reader. For Kindle owners who want to read former John Edwards’ aide, Andrew Young’s “The Politician” or Hilary Mantel’s “Wolf Hall they are out of luck.
Macmillan CEO John Sargent, said some Macmillan titles would still be available from Amazon.com through private sellers and other third parties.
After meeting with Amazon officials on Thursday, Sargent sent a letter to Macmillan authors and literary agents blasting the new pricing model, as a plan that would “allow Amazon to make more money selling Macmillan books and that Macmillan would make less,” according to a report by ABC News.
The core of the dispute with Macmillan, represents the concerns held by other publishers. Macmillan wants to preserve its more lucrative hardcover book market, in which new books retail for more than $24. Publishers such as, Simon & Schuster and HarperCollins have held back new releases from the digital book market, so that hardcover sales are not affected.
With “millions” of consumers now owning a Kindle reader and other competitors producing their own e-readers, the digital book market is the wave of the future. Amazon CEO Jeff Bezos said on Thursday that the firm’s sales of digital books comprise six digital copies to every 10 physical copies of books available in either format.
Macmillan’s new pricing model for new releases, will begin in March, with list prices of $12.99 to $14.99.
Source: ABC News