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Writers and Editors (RSS feed)

Amazon vs Book Publishers (Do Writers Win or Lose?)

Published initially 11/14/2014; updated 11-10-25. Get a cup of copy and read all the comments!


A Case for Openness – Book Publishing and the Role of Amazon (Antje Kreutzmann-Gallasch and Simone Schroff, International Review of International Property and Competition Law, 3-2-22) See summary at NIH National Library of Medicine site.
    "The presence of Amazon is ubiquitous, especially in the online bookstore and e-book market. The introduction of the “Kindle” further cemented Amazon’s dominant position and business model in the market, having negative implications for authors, publishers and consumers. Publishers have less control over setting the price to have access to Amazon’s customer base. This will affect the authors’ remuneration and attribution. On the other hand, Kindle users are locked-in consumers, limited to Amazon’s e-book offering. This not only affects consumer choice but also reinforces Amazon’s market power due to the significant network effects.
    "This article advocates for enforcing the Kindle’s interoperability with the e-book formats of other e-book providers. The proposed approach is beneficial for publishers as well as consumers. It safeguards copyright aims while alleviating the contractual constraints imposed by Amazon. Furthermore, consumers would benefit from broader flexibility when using their Kindle, allowing them to store and read e-books from the provider of their choice."


Everything and Less’ Review: Fiction in Prime Time (Sam Sacks, Wall Street Journal, 11-5-21) Amazon has transformed the way we read books—and, according to Mark McGurl, Stanford professor and literary critic and author of Everything and Less: The Novel in the Age of Amazon, how they’re written. “Most literary studies focus their insights on the writers they consider the best, or the most significant artistically. But Amazon, being primarily a retail platform, doesn’t care about the content of books, only about how they sell and to whom. So under its hegemony the books suddenly elevated in stature belong to the traditionally “down-market sub-basement” commercial genres. In other words, like a private eye or tabloid journalist, Mr. McGurl spends his time digging through trash.”
      “In the Age of Amazon, all fiction is genre fiction. Dividing contemporary literature into a vast array of searchable genre categories, each with its own best-seller list, Amazon is the host of a genre system conceived as an engine of infinitely infoliating permutations of objects of narrative desire.” The most popular of those categories are post-apocalyptic fantasy sagas and romance novels, and Mr.McGurl devotes interpretive space to exemplars from each: Hugh Howey’s “Wool” series and E.L. James’s “Fifty Shades of Grey” trilogy. These books are also notable for having been originally self-published, and it is through Amazon’s Kindle Direct Publishing platform that the company has shown its true service-oriented ethos. Here writers can target increasingly niche customer wishes, and Mr.McGurl has a funny chapter on the explosion of fetish lit, like Adult Baby Diaper Lover erotica, “the quintessential Amazonian genre of literature.”         

     See also McGurl's The Program Era: Postwar Fiction and the Rise of Creative Writing

Authors and Booksellers Urge Justice Dept. to Investigate Amazon (Alexandra Alter, NY Times, 8-16-23) The online retailer’s size and sway affects the free exchange of ideas, the groups argue. The Biden administration has stepped up enforcement of antitrust policies. On Wednesday, the Open Markets Institute, an antitrust think tank, along with the Authors Guild and the American Booksellers Association, sent a letter to the Justice Department and the Federal Trade Commission, calling on the government to curb Amazon’s “monopoly in its role as a seller of books to the public.”
       "The groups are pressing the Justice Department to investigate not only Amazon’s size as a bookseller, but also its sway over the book market — especially its ability to promote certain titles on its site and bury others,said Barry Lynn, the executive director of the Open Markets Institute, a research and advocacy group focused on strengthening antimonopoly policies.
       "What we have is a situation in which the power of a single dominant corporation is warping, in the aggregate, the type of books that we’re reading,” Lynn said in an interview. “This kind of power concentrated in a democracy is not acceptable.”

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Is Amazon Changing the Novel? (Parul Seghal, New Yorker, 11-1-21) In the new literary landscape, readers are customers, writers are service providers, and books are expected to offer instant gratification. "Amazon—which, as its founder, Jeff Bezos, likes to point out, is named for the river that is not only the world’s largest but larger than the next five largest rivers combined—controlled almost three-quarters of new-adult-book sales online and almost half of all new-book sales in 2019, according to the Wall Street Journal. Unlike Mudie’s, it’s also a publisher, with sixteen book imprints...
      "The social-media site Goodreads, purchased by Amazon in 2013, hosts more than a hundred million registered users and, McGurl ventures, may be “the richest repository of the leavings of literary life ever assembled, exceeded only by the mass of granular data sent back to home base from virtually every Kindle device in the world.”

      But what McGurl considers the “most dramatic intervention into literary history” is yet another Amazon division, Kindle Direct Publishing (K.D.P.); it allows writers to bypass traditional gatekeepers and self-publish their work for free, with Amazon taking a significant chunk of any proceeds....

      "The K.D.P. platform pays the author by the number of pages read, which creates a strong incentive for cliffhangers early on, and for generating as many pages as possible as quickly as possible. The writer is exhorted to produce not just one book or a series but something closer to a feed—what McGurl calls a “series of series.” 

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Amazon to shut its bookstores and other shops as its grocery chain expands (Jeffrey Dastin, Reuters, 3-2-22) Amazon.com Inc plans to "close all 68 of its brick-and-mortar bookstores, pop-ups and shops carrying toys and home goods in the United States and United Kingdom, ending some of its longest-running retail experiments. The news marks a turning point for a company that began as an online bookseller and helped drive established rivals such as Borders to bankruptcy.
     "But the company's innovations were not enough to counter the march toward online shopping that Amazon itself had set off. Its "physical stores" revenue - a mere 3% of Amazon's $137 billion in sales last quarter, largely reflective of consumer spending at its Whole Foods subsidiary - has often failed to keep pace with growth in the retailer's other businesses.
      "Michael Pachter, an analyst at Wedbush Securities, said internet-savvy Amazon was right to forgo the niche market of brick-and-mortar book shoppers, as bad a match as electric car maker Tesla Inc (TSLA.O) opening gas stations."

 

Amazon’s Toll Road: How the Tech Giant Funds Its Monopoly Empire by Exploiting Small Businesses (Stacy Mitchell, Institute for Local Self-Reliance, December 2021) "One of the most striking measures of Amazon’s monopoly power is the extraordinary amount of money that it’s able to extract from the independent businesses that rely on its site to reach customers. In this report, we find that, over the last two years, Amazon’s revenue from the fees it levies on third-party sellers has more than doubled. In 2019, Amazon pocketed $60 billion in seller fees.This year, its take will soar to $121 billion, our new research finds....
     "Amazon’s dominance of online retail means that small businesses have little choice but to rely on its site to reach consumers. This report finds that Amazon is exploiting its position as a gatekeeper to impose steep and growing fees on third-party sellers. Even as these exorbitant fees bankrupt sellers, they are generating huge profits for Amazon, a fact that the tech giant conceals in its financial reports. These profits are not only the spoils of Amazon’s monopoly power. They are the essential fuel that feeds its market-domination strategies, enabling it to absorb massive, predatory losses designed to lock-in market control and fund breakneck expansion."

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What Happened to Amazon’s Bookstore? (David Streitfeld, NY Times, 12-3-21) A lawsuit filed in federal court in Maryland "offers a glimpse into Amazon’s dominance and perhaps its vulnerability. Amazon’s online store has surpassed Walmart, making it the largest retailer outside China. By delivering essentials and luxuries to those stuck at home during the pandemic, it helped many people navigate a bleak moment....It is one of the few companies valued at more than a trillion dollars. For all that success, however, Amazon is under pressure from many directions....
     "There are sellers like Mr. Boland, who say they are suffering from the Wild West atmosphere on the site; regulators, who are taking a closer look at Amazon’s power; unhappy warehouse employees, who would like a better deal; and lawmakers, who want Amazon to disclose more about its third-party sellers. There are also the devious sellers themselves, whom Amazon says it is having a hard time eradicating....
      "The bookstore is the oldest part of Amazon, still central to its identity but no longer to its bottom line. It feels like where every Amazon shopping experience could be heading — immense, full of ads and unvetted reviews, ruled by algorithms and third-party sellers whose identities can be elusive.... “Should we care as a society that a single firm controls half of our most precious cultural commodity and its automation isn’t working right?” asked Christopher Sagers, the author of “Antitrust: Examples & Explanations.”... Offering tens of millions of items to hundreds of millions of customers prevents any human touch — but opens up a lot of space for advertising, and for confusion and duplicity....Mr. Boland said: “Amazon has done a great job of expanding the marketplace for books. It’s too bad they’ve decided not to police their own platform, because it’s leading to all sorts of trouble.”Amazon acknowledges that some third-party sellers bring problems, including fraud, counterfeiting and abuse." ...Amazon gives writers and publishers broad latitude to sell anything, including the mediocre and the misleading. The store’s logic has always been that the good work will rise and the bad will fall. In the meantime, however, some readers get suckered."

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People Now Spend More at Amazon Than at Walmart (Karen Weise and Michael Corkery, Technology, NY Times, 8-17-21) Proof that the online future has arrived: The biggest e-commerce company outside China has unseated the biggest brick-and-mortar seller. Propelled in part by surging demand during the pandemic, people spent more than $610 billion on Amazon over the 12 months ending in June... Indeed, the company’s delivery (many items land on doorsteps in a day or two) and wide selection first drew customers to online shopping, and it has kept them buying more there ever since.... “Walmart has been around for so long, and now Amazon comes around with a different model and replaces them as a No. 1.”

 

Amazon’s Importance to US Book Sales Keeps Increasing—for Better or Worse (Jane Friedman draws from material first published in The Hot Sheet, 9-23-2020) Since Hot Sheet started publishing in 2015, Amazon has changed, grown, and dominated more than any other company in the US book publishing industry. Among points discussed (quoting roughly from headings): Of all the writer-focused programs Amazon has launched in the last decade; only one is still active: Kindle Singles, an ebook subscription service which requires exclusivity, has become essential for some genre fiction authors. Amazon could be making it difficult for other publishers to break out new novelists. Amazon has doubled down on its own traditional publishing program, Amazon Publishing (APub). Amazon creates its own bestseller lists and also dominates its own Kindle bestseller list. Definitely worth reading (and The Hot Sheet is worth subscribing, if you're deeply interesting in publishing).

 

Amazon Publishes Books by Top Authors, and Rivals Fret (Jeffrey A. Trachtenberg, Wall Street Journal, 1-14-2020) "Dean Koontz, Patricia Cornwell are among the blue-chip writers whose books the tech giant is not just selling but publishing. It was a surprising move because it means his new books likely won't appear in retail stores, which generally boycott Amazon-published titles. But Mr. Koontz is banking on Amazon’s vast retail machine to get his work to readers, whether in physical or digital formats."

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A lot has changed in book publishing in the last ten years (Mike Shatzkin, Shatzkin Files, 7-23-19) "At the beginning of this decade, Amazon Publishing had ideas about signing up big authors. But they were stymied then by the pretty stubborn refusal of the rest of the supply chain to stock books published by their biggest retail competitor.
"But that was when Amazon sales were about 20-25 percent of the market. Now they’re probably over half, and well above that for many books. Whether they will successfully sell Koontz beyond Amazon remains to be seen, but their no-middleperson structure enables them to pay far more of each retail dollar in royalties, so half the sales or more can generate more income to the author than a publisher without its own retailing capability can deliver selling a larger number of units. If this is a sign of things to come, and it is hard to see why it wouldn’t be, some profound changes might be just around the corner."

 

The Week’s Big Story: Amazon Publishing on Wooing Dean Koontz (Porter Anderson, Publishing Perspectives, 7-26-19)
Amazon To Open Hundreds Of Brick-And-Mortar Bookstores (Pavithra Mohan, Fast Company, 2-2-16) Amazon, the online retailer that killed off so many independent bookshops, is getting ready to launch its own brick-and-mortar book chain. According to the Wall Street Journal, the CEO of a major mall operator, General Growth Properties, revealed on Tuesday that Amazon intends to launch hundreds of bookstores.
Why Amazon's Rumored "Bookstores" Probably Won't Be What You Think (Rich Bellis, Fast Company, 2-3-16) If Amazon does expand its physical retail footprint, don’t expect it to focus exclusively or even primarily on books. It may see physical locations as (among other things) more akin to Apple Stores, where it can showcase the hardware it sells online.

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Meet the Guy Behind Amazon’s Secret Retail Store Plans (Jason Del Rey, re/code, 2-3-16) The man behind the Kindle is leading Amazon’s project to create the retail stores of the future. And bookstores are just the beginning. These are two of the new details Re/code has uncovered about Amazon’s plans for expansion into physical retail.
Amazon Plans Hundreds of Brick-and-Mortar Bookstores, Mall CEO Says (Greg Bensinger, WSJ, 2-2-16) mazon Plans Hundreds of Brick-and-Mortar Bookstores, Mall CEO Says

In the following pieces about a dispute among them, Amazon and book publishers take turns being the bad guy. Authors, read these often excellent arguments for and against book publishers, Amazon, and others engaged in this battle for market power and tell us what you think!

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Social media regulation in European Union

I honestly don't understand how these entries on the proposed Digital Services Act and Digital Marketing Act will work or if they will affect people in the United States, but they seem to be a game-changer in Europe and might eventually create pressure for more regulation of social media in the United States. I am providing some links here, moving the Popular Science entry from last to first because it's in the plainest English:
Everything you need to know about the battle between US tech and EU laws (Harry Guinness, Popular Science, 4-27-22)

    "The European Parliament recently approved the Digital Services Act and the Digital Markets Act. Here's how that could affect big tech.
     "According to the EU, the DSA and DMA have two big goals: “create a safer digital space in which the fundamental rights of all users of digital services are protected” and “establish a level playing field to foster innovation, growth, and competitiveness, both in the European Single Market and globally.”

     "In practice, this means overseeing how large social networks, search engines, and other tech companies do business, and limiting how they use consumer data.
     "The DSA in particular has rules targeted at online services like Facebook, Instagram, Google, and TikTok. It bans targeted advertising aimed at children, or based on sensitive data like religion, gender, race, sexual orientation, or political affiliation. It also bans “dark patterns” or deceptive design elements that can trick you into buying or signing up for something unintentionally. For example, websites will have to present the buttons to opt in and out of targeted ads equally; the option to opt out can’t be tucked away behind a text link on the second page of settings and written in a small font colored to match the background. Unless US tech companies create separate page and app designs just for EU customers, this will hopefully improve the web user experience around the world."

     Etc.


EU poised to impose sweeping social media regulation with Digital Services Act (Technology + Press Freedom, Reporters Committee for Freedom of the Press, 5-8-22) The European Union is on the verge of doing what the U.S. has not done (and, in some cases, could not do) — comprehensively regulate social media platforms. Last week, the European Parliament and EU Council reached an agreement on the Digital Services Act, and while the final text has not been released, the law would impose sweeping new rules for internet platforms, regulating everything from “dark patterns” and algorithms to public safety threats and illegal content.
       The DSA, and its partner regulation, the Digital Markets Act, were introduced to the European Parliament in 2020. The European Commission said the regulations were intended to accomplish two goals: “create a safer digital space in which the fundamental rights of all users of digital services are protected” and “establish a level playing field to foster innovation, growth, and competitiveness, both in the European Single Market and globally.”
Digital Services Act: Council and European Parliament provisional agreement for making the internet a safer space for European citizens (Council of the European Union, 4-23-22)
    The Digital Services Act package "The Digital Services Act and Digital Markets Act aim to create a safer digital space where the fundamental rights of users are protected and to establish a level playing field for businesses. What are Digital Services?
Digital services include a large category of online services, from simple websites to internet infrastructure services and online platforms.
      "The rules specified in the DSA primarily concern online intermediaries and platforms. For example, online marketplaces, social networks, content-sharing platforms, app stores, and online travel and accommodation platforms.
      "The Digital Markets Act includes rules that govern gatekeeper online platforms. Gatekeeper platforms are digital platforms with a systemic role in the internal market that function as bottlenecks between businesses and consumers for important digital services. Some of these services are also covered in the Digital Services Act, but for different reasons and with different types of provisions.
Deal on Digital Markets Act: EU rules to ensure fair competition and more choice for users (Press Releases, European Parliament, 3-24-22) Twitter LinkedIn Whatsapp

     "On Thursday evening, Parliament and Council negotiators agreed new EU rules to limit the market power of big online platforms.
      "The Digital Markets Act (DMA) will ban certain practices used by large platforms acting as “gatekeepers” and enable the Commission to carry out market investigations and sanction non-compliant behaviour.
       "The text provisionally agreed by Parliament and Council negotiators targets large companies providing so-called “core platform services” most prone to unfair business practices, such as social networks or search engines, with a market capitalisation of at least 75 billion euro or an annual turnover of 7.5 billion. To be designated as “gatekeepers”, these companies must also provide certain services such as browsers, messengers or social media, which have at least 45 million monthly end users in the EU.and 10 000 annual business users.
      "During a close to 8-hour long trilogue (three-way talks between Parliament, Council and Commission), EU lawmakers agreed that the largest messaging services (such as Whatsapp, Facebook Messenger or iMessage) will have to open up and interoperate with smaller messaging platforms, if they so request. Users of small or big platforms would then be able to exchange messages, send files or make video calls across messaging apps, thus giving them more choice. As regards interoperability obligation for social networks, co-legislators agreed that such interoperability provisions will be assessed in the future.
Digital Services Act: agreement for a transparent and safe online environment (Press releases, European Parliament, 4-23-22)

---Access to platforms’ algorithms now possible
---Online platforms will have to remove illegal products, services or content swiftly after they have been reported
---Protection of minors online reinforced; additional bans on targeted advertising for minors as well as targeting based on sensitive data
---Users will be better informed how content is recommended to them

Digital Services Act: Council and European Parliament provisional agreement for making the internet a safer space for European citizens (Council of the European Union, 4-23-22)

      "The DSA follows the principle that what is illegal offline must also be illegal online. It aims to protect the digital space against the spread of illegal content, and to ensure the protection of users’ fundamental rights. The DSA introduces an obligation for very large digital platforms and services to analyse systemic risks they create and to carry out risk reduction analysis. This analysis must be carried out every year and will enable continuous monitoring aimed at reducing risks associated with:
---dissemination of illegal content
---adverse effects on fundamental rights
---manipulation of services having an impact on democratic processes and public security
---adverse effects on gender-based violence, and on minors and serious consequences for the physical or mental health of users."

EU officially boots Russia’s RT, Sputnik outlets (Laura Kayali and Clothilde Goujard,Politico Pro, 3-2-22)

     "Kremlin-backed media outlets RT and Sputnik are officially banned in the EU as of Wednesday morning, in a move meant to crack down on Russian disinformation amid Moscow's invasion of Ukraine.
     "The sanctions against the news groups were published in the EU's Official Journal, effectively providing legal grounds to implement the Commission and EU governments’ decision to take both Russian state-run organizations off the air and offline within the bloc.
    “[The measures] are also limited in time, because they should be maintained until the aggression is put to an end and until Russia and its media outlets cease to conduct propaganda actions against the Union and the member states,” the EU official added."

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