Readersforum's Blog

March 10, 2013

US indies launch DRM lawsuit

posmanThree US independent bookshops have launched a lawsuit against the big six publishers and Amazon in America claiming that by signing a contract to sell e-books with DRM through Amazon, they are combining to restrict the sale of e-books through indie stores.

Fiction Addiction in South Carolina, Posman Books in New York [pictured] and Book House of Stuyvesant Plaza are taking the action against Hachette, HarperCollins, Simon & Schuster, Penguin, Random House, Macmillan and Amazon claiming that the publishers signed contracts with Amazon to sell e-books with DRM that was “specifically designed to limit the use of digital content” to Kindle devices, according to Publishers Lunch.

Click here to read the rest of this story

Advertisements

April 18, 2012

Book Publishing’s Real Nemesis

Eric Holder with Sharis Pozen, acting assistant attorney general, discussing the price-fixing case.

By DAVID CARR

The Justice Department finally took aim at the monopolistic monolith that threatened to dominate the book industry. So imagine the shock when the bullet aimed at threats to competition went whizzing by Amazon — which not long ago had a 90 percent stranglehold on e-books — and instead, struck five of the six biggest publishers and Apple, a minor player in the realm of books.

That’s the modern equivalent of taking on Standard Oil but breaking up Ed’s Gas ’N’ Groceries on Route 19 instead.

Last week, the Justice Department sued in United States District Court in New York, charging that Apple, Hachette, HarperCollins, Macmillan, Penguin and Simon & Schuster had colluded to fix e-book prices. (Hachette, Simon & Schuster and HarperCollins have already agreed to settle.)

The suit has its roots in 2007, when Amazon released the Kindle and began selling some of the most sought-after books for $9.99 in order to bolster sales of its device. Not surprisingly, booksellers and publishers hated this price with the force of 10,000 suns because it made physical books sold for $25 or more seem outrageously overpriced.

Under the wholesale arrangement with Amazon, the publishers received half of the list price, which yielded better money, but gave them no control over the pricing of their product. With the introduction of the iPad, publishers got a crack at remaking their deal because Apple allowed them to set the price and then took a cut of 30 percent.

That so-called agency model developed with Apple allowed publishers, not just Amazon, to set the price and in a move that caught the interest of the Justice Department, they all came up with pretty much the same price. (Why the crumbling book business is worthy of so much attention from Justice while Wall Street skates is a broader question we’ll leave for another day.)

Click here to read the rest of this story

November 4, 2011

Amazon Launches Lending Library Without the Big Six

By Calvin Reid with additional reporting from Rachel Deahl

As rumored for months, Amazon is getting into the digital book lending business, announcing the launch of Kindle Owners Lending Library for Amazon Prime members. Amazon Prime members—who pay $79 a year for free shipping on products and streaming movies—can now borrow one book a month for free. But there’s a hitch: none of the big six publishers, all of which use the agency model to sell their titles, are participating in the program.

Nonetheless, the model isn’t quite the all-you-can-eat lending subscription service many observers had rumored. Amazon Prime members can only borrow one book at a time, even though the service claims to have “no due dates” for finishing the book. While Amazon touts that the service offers “thousands” of books to borrow and at least “100 New York Times bestsellers,” none of the titles in the program are from the largest trade publishers–Random House, Simon & Schuster, HarperCollins, Macmillan, Penguin and Hachette. The program features titles from a variety of mid-size houses that continue to sell their books using the wholesale model, including W.W. Norton, Scholastic, and titles by well-known self-published authors such as Seth Godin.
Publishers using the agency model have complete control over the pricing of their books and, as some have noted, the model does not allow for the price to be changed or discounted. With the wholesale model, publishers cannot dictate final retail pricing. Amazon’s statement in launching the lending program said it is either paying a flat fee to publishers to feature its titles, or paying the standard wholesale discount for each book that is borrowed.
Nevertheless, PW has learned that some non-agency houses have declined to be a part of the lending program. One mid-size publisher that sells wholesale said the “fee” Amazon mentions is a “lump sum” payment that the publisher must allocate to its authors. The fee is said to be determined by Amazon by looking at the 12-month sales history of the titles in question. And according to our sources, some agents are starting to complain about the payment plan.
                                                                                  …read more

August 11, 2011

Class-action Suit Filed Against Apple and 5 Book Publishers Over E-book Pricing

By Jordan Golson

A class-action lawsuit has been filed against Apple and 5 of the 6 major book publishers, alleging they “colluded to increase prices for popular e-book titles to boost profits and force e-book rival Amazon to abandon its pro-consumer discount pricing.”

The lawsuit, filed this afternoon in the Northern District of California claims Apple and Hachette, HarperCollins, MacMillan, Penguin, and Simon & Shuster illegally worked together to enable an “agency model” as the standard for e-book sales, rather than the “wholesale model” that is used in the physical publishing industry. The complaint argues that the strategy was unfair and anticompetitive because e-book prices rose after the agreements were in place.

From the lawsuit:

read more

March 17, 2011

New iBooks update opens door to fully illustrated publishing

By  Charlotte Williams

Apple’s latest version of its iBooks app, which allows e-books to have a pictorial layout similar to printed books and supports full page illustrations, has been hailed by one publisher as being “the beginning of a phenomenally exciting phase in picture book publishing”.

The new version of the online store means all publishers signed up to Apple’s terms on the iBookstore, including HarperCollins, Hachette, Penguin, Pan Macmillan, Canongate and Simon & Schuster, will be able to release fully illustrated e-books.

                                                                                                                                               …read more

February 7, 2011

Agency could be on hold for new publishers

 | Charlotte Williams and Lisa Campbell

The transition to the agency model could be halted as publishers outside of the new terms could wait as much as a year for an Office of Fair Trading investigation into e-book pricing to be completed.

The OFT announced this week it would investigate whether the model breaches competition rules after a “significant” number of complaints.   …read more

Blog at WordPress.com.

%d bloggers like this: