Monday, September 22, 2014
Saturday, August 9, 2014
A new letter from Amazon
Dear KDP Author,
Just ahead of World War II, there was a radical invention that shook the foundations of book publishing. It was the paperback book. This was a time when movie tickets cost 10 or 20 cents, and books cost $2.50. The new paperback cost 25 cents – it was ten times cheaper. Readers loved the paperback and millions of copies were sold in just the first year.
With it being so inexpensive and with so many more people able to afford to buy and read books, you would think the literary establishment of the day would have celebrated the invention of the paperback, yes? Nope. Instead, they dug in and circled the wagons. They believed low cost paperbacks would destroy literary culture and harm the industry (not to mention their own bank accounts). Many bookstores refused to stock them, and the early paperback publishers had to use unconventional methods of distribution – places like newsstands and drugstores. The famous author George Orwell came out publicly and said about the new paperback format, if “publishers had any sense, they would combine against them and suppress them.” Yes, George Orwell was suggesting collusion.
Well… history doesn’t repeat itself, but it does rhyme.
Fast forward to today, and it’s the e-book’s turn to be opposed by the literary establishment. Amazon and Hachette – a big US publisher and part of a $10 billion media conglomerate – are in the middle of a business dispute about e-books. We want lower e-book prices. Hachette does not. Many e-books are being released at $14.99 and even $19.99. That is unjustifiably high for an e-book. With an e-book, there’s no printing, no over-printing, no need to forecast, no returns, no lost sales due to out of stock, no warehousing costs, no transportation costs, and there is no secondary market – e-books cannot be resold as used books. E-books can and should be less expensive.
Perhaps channeling Orwell’s decades old suggestion, Hachette has already been caught illegally colluding with its competitors to raise e-book prices. So far those parties have paid $166 million in penalties and restitution. Colluding with its competitors to raise prices wasn’t only illegal, it was also highly disrespectful to Hachette’s readers.
The fact is many established incumbents in the industry have taken the position that lower e-book prices will “devalue books” and hurt “Arts and Letters.” They’re wrong. Just as paperbacks did not destroy book culture despite being ten times cheaper, neither will e-books. On the contrary, paperbacks ended up rejuvenating the book industry and making it stronger. The same will happen with e-books.
Many inside the echo-chamber of the industry often draw the box too small. They think books only compete against books. But in reality, books compete against mobile games, television, movies, Facebook, blogs, free news sites and more. If we want a healthy reading culture, we have to work hard to be sure books actually are competitive against these other media types, and a big part of that is working hard to make books less expensive.
Moreover, e-books are highly price elastic. This means that when the price goes down, customers buy much more. We've quantified the price elasticity of e-books from repeated measurements across many titles. For every copy an e-book would sell at $14.99, it would sell 1.74 copies if priced at $9.99. So, for example, if customers would buy 100,000 copies of a particular e-book at $14.99, then customers would buy 174,000 copies of that same e-book at $9.99. Total revenue at $14.99 would be $1,499,000. Total revenue at $9.99 is $1,738,000. The important thing to note here is that the lower price is good for all parties involved: the customer is paying 33% less and the author is getting a royalty check 16% larger and being read by an audience that’s 74% larger. The pie is simply bigger.
But when a thing has been done a certain way for a long time, resisting change can be a reflexive instinct, and the powerful interests of the status quo are hard to move. It was never in George Orwell’s interest to suppress paperback books – he was wrong about that.
And despite what some would have you believe, authors are not united on this issue. When the Authors Guild recently wrote on this, they titled their post: “Amazon-Hachette Debate Yields Diverse Opinions Among Authors” (the comments to this post are worth a read). A petition started by another group of authors and aimed at Hachette, titled “Stop Fighting Low Prices and Fair Wages,” garnered over 7,600 signatures. And there are myriad articles and posts, by authors and readers alike, supporting us in our effort to keep prices low and build a healthy reading culture. Author David Gaughran’s recent interview is another piece worth reading.
We recognize that writers reasonably want to be left out of a dispute between large companies. Some have suggested that we “just talk.” We tried that. Hachette spent three months stonewalling and only grudgingly began to even acknowledge our concerns when we took action to reduce sales of their titles in our store. Since then Amazon has made three separate offers to Hachette to take authors out of the middle. We first suggested that we (Amazon and Hachette) jointly make author royalties whole during the term of the dispute. Then we suggested that authors receive 100% of all sales of their titles until this dispute is resolved. Then we suggested that we would return to normal business operations if Amazon and Hachette’s normal share of revenue went to a literacy charity. But Hachette, and their parent company Lagardere, have quickly and repeatedly dismissed these offers even though e-books represent 1% of their revenues and they could easily agree to do so. They believe they get leverage from keeping their authors in the middle.
We will never give up our fight for reasonable e-book prices. We know making books more affordable is good for book culture. We’d like your help. Please email Hachette and copy us.
Hachette CEO, Michael Pietsch: Michael.Pietsch@hbgusa.com
Copy us at: readers-united@amazon.com
Please consider including these points:
- We have noted your illegal collusion. Please stop working so hard to overcharge for ebooks. They can and should be less expensive.
- Lowering e-book prices will help – not hurt – the reading culture, just like paperbacks did.
- Stop using your authors as leverage and accept one of Amazon’s offers to take them out of the middle.
- Especially if you’re an author yourself: Remind them that authors are not united on this issue.
Thanks for your support.
The Amazon Books Team
P.S. You can also find this letter at www.readersunited.com
Just ahead of World War II, there was a radical invention that shook the foundations of book publishing. It was the paperback book. This was a time when movie tickets cost 10 or 20 cents, and books cost $2.50. The new paperback cost 25 cents – it was ten times cheaper. Readers loved the paperback and millions of copies were sold in just the first year.
With it being so inexpensive and with so many more people able to afford to buy and read books, you would think the literary establishment of the day would have celebrated the invention of the paperback, yes? Nope. Instead, they dug in and circled the wagons. They believed low cost paperbacks would destroy literary culture and harm the industry (not to mention their own bank accounts). Many bookstores refused to stock them, and the early paperback publishers had to use unconventional methods of distribution – places like newsstands and drugstores. The famous author George Orwell came out publicly and said about the new paperback format, if “publishers had any sense, they would combine against them and suppress them.” Yes, George Orwell was suggesting collusion.
Well… history doesn’t repeat itself, but it does rhyme.
Fast forward to today, and it’s the e-book’s turn to be opposed by the literary establishment. Amazon and Hachette – a big US publisher and part of a $10 billion media conglomerate – are in the middle of a business dispute about e-books. We want lower e-book prices. Hachette does not. Many e-books are being released at $14.99 and even $19.99. That is unjustifiably high for an e-book. With an e-book, there’s no printing, no over-printing, no need to forecast, no returns, no lost sales due to out of stock, no warehousing costs, no transportation costs, and there is no secondary market – e-books cannot be resold as used books. E-books can and should be less expensive.
Perhaps channeling Orwell’s decades old suggestion, Hachette has already been caught illegally colluding with its competitors to raise e-book prices. So far those parties have paid $166 million in penalties and restitution. Colluding with its competitors to raise prices wasn’t only illegal, it was also highly disrespectful to Hachette’s readers.
The fact is many established incumbents in the industry have taken the position that lower e-book prices will “devalue books” and hurt “Arts and Letters.” They’re wrong. Just as paperbacks did not destroy book culture despite being ten times cheaper, neither will e-books. On the contrary, paperbacks ended up rejuvenating the book industry and making it stronger. The same will happen with e-books.
Many inside the echo-chamber of the industry often draw the box too small. They think books only compete against books. But in reality, books compete against mobile games, television, movies, Facebook, blogs, free news sites and more. If we want a healthy reading culture, we have to work hard to be sure books actually are competitive against these other media types, and a big part of that is working hard to make books less expensive.
Moreover, e-books are highly price elastic. This means that when the price goes down, customers buy much more. We've quantified the price elasticity of e-books from repeated measurements across many titles. For every copy an e-book would sell at $14.99, it would sell 1.74 copies if priced at $9.99. So, for example, if customers would buy 100,000 copies of a particular e-book at $14.99, then customers would buy 174,000 copies of that same e-book at $9.99. Total revenue at $14.99 would be $1,499,000. Total revenue at $9.99 is $1,738,000. The important thing to note here is that the lower price is good for all parties involved: the customer is paying 33% less and the author is getting a royalty check 16% larger and being read by an audience that’s 74% larger. The pie is simply bigger.
But when a thing has been done a certain way for a long time, resisting change can be a reflexive instinct, and the powerful interests of the status quo are hard to move. It was never in George Orwell’s interest to suppress paperback books – he was wrong about that.
And despite what some would have you believe, authors are not united on this issue. When the Authors Guild recently wrote on this, they titled their post: “Amazon-Hachette Debate Yields Diverse Opinions Among Authors” (the comments to this post are worth a read). A petition started by another group of authors and aimed at Hachette, titled “Stop Fighting Low Prices and Fair Wages,” garnered over 7,600 signatures. And there are myriad articles and posts, by authors and readers alike, supporting us in our effort to keep prices low and build a healthy reading culture. Author David Gaughran’s recent interview is another piece worth reading.
We recognize that writers reasonably want to be left out of a dispute between large companies. Some have suggested that we “just talk.” We tried that. Hachette spent three months stonewalling and only grudgingly began to even acknowledge our concerns when we took action to reduce sales of their titles in our store. Since then Amazon has made three separate offers to Hachette to take authors out of the middle. We first suggested that we (Amazon and Hachette) jointly make author royalties whole during the term of the dispute. Then we suggested that authors receive 100% of all sales of their titles until this dispute is resolved. Then we suggested that we would return to normal business operations if Amazon and Hachette’s normal share of revenue went to a literacy charity. But Hachette, and their parent company Lagardere, have quickly and repeatedly dismissed these offers even though e-books represent 1% of their revenues and they could easily agree to do so. They believe they get leverage from keeping their authors in the middle.
We will never give up our fight for reasonable e-book prices. We know making books more affordable is good for book culture. We’d like your help. Please email Hachette and copy us.
Hachette CEO, Michael Pietsch: Michael.Pietsch@hbgusa.com
Copy us at: readers-united@amazon.com
Please consider including these points:
- We have noted your illegal collusion. Please stop working so hard to overcharge for ebooks. They can and should be less expensive.
- Lowering e-book prices will help – not hurt – the reading culture, just like paperbacks did.
- Stop using your authors as leverage and accept one of Amazon’s offers to take them out of the middle.
- Especially if you’re an author yourself: Remind them that authors are not united on this issue.
Thanks for your support.
The Amazon Books Team
P.S. You can also find this letter at www.readersunited.com
Friday, July 11, 2014
COOL not CUTE!: Another commentator who seems to think they know m...
COOL not CUTE!: Another commentator who seems to think they know m...: I wrote a post back in April in response to some of the articles and blog posts I’d seen rejecting my call for more gender-balance in the ...
Wednesday, June 25, 2014
Flying Solo Press: 10 year old journalist at the Denver Post pens the...
Zooooom. Thirteen year old Lucas Benes rides down the streets of Paris, France. However, this isn’t a vacation for him. This is a mission to stop the so-called Good Company from brainwashing another group of innocent children and selling them for child labor. “Brainwashed” by Paul Aertker is a fast paced novel that will keep you at the edge of your seat. Still, through all the excitement there are some life lessons hidden within.
The Good Company plays the role of the villain in this book, despite having most of the public tricked into believing their name. “If someone tells you something enough times, you will eventually believe them,” Aertker says.
What’s riveting in this novel is that the people trying to stop the Good Company aren’t grownups, but kids. In this case, it’s the children’s problem not the adults’. Therefore the kids must solve it. “Adults can’t solve all the problems in the world,” Aertker says, who seems very confident in our generation’s ability to clean up adult messes.
What originally started out as a travel-themed book like the “Magic Treehouse” became a realistic fiction novel, fun for boys and girls to read. Though I recommend this book for 9-13 year olds, older kids will also enjoy this quick read. Once you’re finished, you’ve only just begun because in the next book “Lucas finds who he really is,” Aertker says. So I suggest you set out on your summer vacation with this unforgettable page turner.Flying Solo Press: 10 year old journalist at the Denver Post pens the...: This is an article by a 10-year-old journalist with the Denver Post. Check it out: http://nextgen.yourhub.com/article/parisian-page-tur...
www.crimetravelers.com
Tuesday, June 17, 2014
10 year old journalist at the Denver Post pens the best review ever
Zooooom. Thirteen year old Lucas Benes rides down the streets of Paris, France.
However, this isn’t a vacation for him. This is a mission to stop the so-called Good Company from brainwashing another group of innocent children and selling them for child labor. “Brainwashed” by Paul Aertker is a fast paced novel that will keep you at the edge of your seat. Still, through all the excitement there are some life lessons hidden within.
However, this isn’t a vacation for him. This is a mission to stop the so-called Good Company from brainwashing another group of innocent children and selling them for child labor. “Brainwashed” by Paul Aertker is a fast paced novel that will keep you at the edge of your seat. Still, through all the excitement there are some life lessons hidden within.
The Good Company plays the role of the villain in this book, despite having most of the public tricked into believing their name. “If someone tells you something enough times, you will eventually believe them,” Aertker says.
What’s riveting in this novel is that the people trying to stop the Good Company aren’t grownups, but kids. In this case, it’s the children’s problem not the adults’. Therefore the kids must solve it. “Adults can’t solve all the problems in the world,” Aertker says, who seems very confident in our generation’s ability to clean up adult messes.
What originally started out as a travel-themed book like the “Magic Treehouse” became a realistic fiction novel, fun for boys and girls to read. Though I recommend this book for 9-13 year olds, older kids will also enjoy this quick read. Once you’re finished, you’ve only just begun because in the next book “Lucas finds who he really is,” Aertker says.
So I suggest you set out on your vacation with this unforgettable page turner. (The Crime Travelers Series is available at Amazon and at physical bookstores everywhere.
So I suggest you set out on your vacation with this unforgettable page turner. (The Crime Travelers Series is available at Amazon and at physical bookstores everywhere.
This is an article by a 10-year-old journalist with the Denver Post. Check it out: http://nextgen.yourhub.com/article/parisian-page-turner
Saturday, May 10, 2014
Top 5 list for MG/YA Diversity (via Yahoo)
According to the Huffington Post, libraries are working to bridge the cultural divide in readers because a "child's lack of exposure to other cultures, [can fuel] intolerance and cultural invisibility."
Diversity in Young Adult and Middle Grade books got a huge boost this week from a group of authors, publishers, and bloggers who declared that it is "the time to raise our voices into a roar."
The Tumblr movement dubbed #WeNeedDiverseBooks was aimed at raising awareness around diversity in children's literature. The campaign garnered support from ...
Sunday, May 4, 2014
#WePromoteDiverseBooks
#WeNeedDiverseBooks.
I agree. We need diverse books.
I’ve always been concerned about diversity in
literature. For me, diversity can mean more than race, gender, or ethnicity; it can mean
socio-economic, geographic, or cultural diversity.
This diverse book campaign reminds me of Mike McQueen’s
hugely successful #GettingBoysToRead movement. In Mike’s new book, he gives
educators tips on helping and encouraging boys to … well… um … read.
Still, boys have to have something to read. They need an
actual book, a novel, they want to read. But those books exist! We just have to
put them in the boys’ hands. Equally, we need diverse books. But at the same
time, I would say that we actually have them. We may not have enough, but they
are there.
We have to promote the books that address these needs. Let’s
take this “We Need” to a higher level. If we want those books, if we need those
books then let’s start by showcasing the books that we already have.
Let’s raise up these diverse books and boy books by
promoting them. I’ll start by showing two of my all-time favorite books that
satisfy both categories: diverse and boys.
Both diverse. Both boy books.
Please share your favorite diverse book or your favorite
book for boys in the comments!
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