So, for those of you who might not be in the know, here is the lowdown. There has been a breakdown in negotiations between Amazon and MacMillan publishing. Who's MacMillan you ask, well they are also FSG publishing, Henry Holt, Picadore, Palmgrave, Kinfisher, St. Martin's press and most importantly in my mind, TOR/Forge publishing for lots of Sci Fi/Fantasy books...lots of Really good SF/F books. What were the negotiations over? Well, from what I understand, Amazon wants a fixed price ceiling for all ebooks of 9.99 and that the publisher will only do ebooks in Kindle Format. McMillan wants to use a flexible or dynamic pricing point (e.g. a bit higher when it comes out or is a very popular author say at 14.95 for the first several months, then dropping to a more reasonable 5.95 or less later. Pretty standard pricing procedure in the market place).
Just before Apple announced the iPad and the agency deal for ebooks, Amazon pre-empted by announcing an option for publishing ebooks in which they would graciously reduce their cut from 70% to 30%, "same as Apple". From a distance this looks competitive, but the devil is in the small print; to get the 30% rate, you have to agree that Amazon is a publisher, license your rights to Amazon to publish through the Kindle platform, guarantee that you will not allow other ebook editions to sell for less than the Kindle price, and let Amazon set that price, with a ceiling of $9.99. In other words, Amazon choose how much to pay you, while using your books to undercut any possible rivals (including the paper editions you still sell). It shouldn't surprise anyone that the major publishers don't think very highly of this offer.
So talks broke down, and Amazon pulled all MacMillan books (print and ebook)off their shelves. Pre-orders? Nope, canceled. The only place they are still selling MacMillan books is through their 3rd party sellers. So why does Amazon have such a sticking point on this? Well, Amazon's president has said publicly that they are willing to price the ebooks so low and take a loss FOR 5 YEARS, in order to get a strangle hold on the market. After that, when they are the dominant seller and reader they can charge what they want.
I've always been very suspicious about the Kindle. I didn't like that you didn't "own" the books you bought. You were paying for the privilege to read them on a reader you also had to pay for and pay a monthly fee on as well. Plus you can only read Amazon books on it, and if for any reason they wanted to, they could take your books away, because they still owned it. Here's an analogy. For $250 you can get a library card, and for an extra $200 you can sit in the good light to read. You can read any book in the library for $10... each, but you can't take it out of the library, you can't lend it to your friend, and if for some reason we feel like it, we can take the book back (even if you're not done reading it) and make it unavailable. Not my idea of a good deal.
Now, I like the idea of tablet readers, I just don't want Amazon being the only player. I kind of hope that Apple's Ipad (ok worst name, sounds like a sanitary napkin) breaks Amazon's hold. Or that the little tantrum backfires on them and instead of scaring other publishing houses, causes them to also cry bullshit and loose the dogs of TOR (see what I did there? Made a pun and all...never mind back to the rant) forcing them to drop the issue, or shoot themselves in the foot. I'm not anti-Amazon. I'm not anti-Capitalism. But I feel that Amazon is dicking with good authors and a lot of readers. As it is publishing operates on a damn thin margin, and Amazon already makes the money coming and going, dicking with me isn't going to put them in my Favorites category.
Should you want to read what a few other folks have had to say about it, here are a few good ones: (Note I am stealing the comments and links from Doug aka swords_and_pens (a damn fine edit: now under contract and soon to be published author himself)
Charles Stross with his break-down of what Amazon and MacMillan were trying to accomplish, respectively.
http://www.antipope.org/charlie/blog-static/2010/01/amazon-macmillan-an-outsiders.htmlTobias Buckell's many thoughts on what is happening, and why he will no longer be selling his books on Amazon. He gives a nice breakdown of the costs behind what it takes to produce a book, which helps debunk some of the "But the price-point on an e-book is Zero, so I should get them for dirt cheap!" camp's arguments.
http://www.tobiasbuckell.com/2010/01/31/why-my-books-are-no-longer-for-sale-via-amazon/Laura Ann Gilman has apparently culled Amazon's (testy?) response to MacMillan's letter and proposal.
http://suricattus.livejournal.com/1202577.htmlAs with all things, you are free to do as you choose, but I think I will be passing on Amazon for a while.