Amazon Blinks, Blames Macmillan
If anyone doubted 2010 was going to be a tumultuous year, this final weekend of its first month has proven otherwise.
After Amazon startled the industry by suspending direct sales of all Macmillan books (print and Kindle editions) sometime Friday evening, in response to Macmillan’s proposing new terms of sales for ebooks, they have now announced they “will have to capitulate and accept Macmillan’s terms.”
Interestingly, Amazon made this announcement directly to their customers within their Kindle Community message board, in an announcement entitled Macmillan’s E-books:
Macmillan, one of the “big six” publishers, has clearly communicated to us that, regardless of our viewpoint, they are committed to switching to an agency model and charging $12.99 to $14.99 for e-book versions of bestsellers and most hardcover releases.
We have expressed our strong disagreement and the seriousness of our disagreement by temporarily ceasing the sale of all Macmillan titles. We want you to know that ultimately, however, we will have to capitulate and accept Macmillan’s terms because Macmillan has a monopoly over their own titles, and we will want to offer them to you even at prices we believe are needlessly high for e-books. Amazon customers will at that point decide for themselves whether they believe it’s reasonable to pay $14.99 for a bestselling e-book. We don’t believe that all of the major publishers will take the same route as Macmillan. And we know for sure that many independent presses and self-published authors will see this as an opportunity to provide attractively priced e-books as an alternative.
Kindle is a business for Amazon, and it is also a mission. We never expected it to be easy!
Thank you for being a customer.
The decision to make the announcement within their own forums and their point about Kindle being “a mission” (emphasis mine) should be noted as it highlights Amazon’s direct relationship with their customers, a relationship most publishers don’t enjoy, leaving them at the mercy of intermediaries like Amazon.
Welcome to the new world of publishing.
Everything you thought you knew about the business is going to be upended.