With Apple On The Sidelines, Amazon Digs In Over Hachette Book Dispute
May 28, 2014
In recent weeks, Amazon and publisher Hachette have been having a very public feud as the two sides have attempted to negotiate a new contract. Amazon has finally broken its silence on the issue — not that it means all that much. Until the dispute is resolved, consumers are still the ones missing out.
With negotiations still ongoing, Amazon is currently refusing to accept preorders on many of the publisher’s upcoming titles. They are also carrying less print editions and “safety stock titles” from the company.
Among the titles currently being affected by Amazon’s practices is “The Silkworm,” the upcoming book by J.K. Rowling, written under the pseudonym Robert Galbraith. The title, which launches in mid-June, is currently unavailable to preorder through Amazon. The title is available at Apple's iBookstore and through Barnes & Noble.
In a statement by the Amazon Books Team, the online retailer explains that protecting customers long-term is the reason for their current practices, stating "Negotiating for acceptable terms is an essential business practice that is critical to keeping service and value high for customers in the medium and long term." They also explain that they have the “right” to "determine whether the terms on an offer are acceptable and to stock items accordingly.”
So far, Hachette has remained largely silent on the issue.
On May 9, the company noted “we are satisfying all Amazon’s orders promptly, and notifying them constantly of forthcoming publicity events and of out-of-stock situations on their website. Amazon is holding minimal stock and restocking some of HBG's books slowly, causing “available 2-4 weeks” messages, for reasons of their own.”
Amazon does have every right to “stock items accordingly,” and it’s not like we can’t go elsewhere to purchase books. Nonetheless, it’s important to note that Amazon’s position as the largest book seller in the world has only been buoyed in recent months by Apple's woes. Cupertino is currently encumbered by an injunction that keeps it from negotiating deals with Hachette, and other “Big 5” U.S. publishers.
As you may recall, Apple was successfully sued last year by the U.S. government for conspiring with book publishers to raise e-book prices.
Until Apple joined the e-book market in 2010 with the arrival of the iPad, publishers followed a “wholesale model,” which allowed resellers like Amazon to set prices. Apple preferred an “agency model,” which essentially meant that books were sold at the same price everywhere. Apple is currently appealing the antitrust ruling and hopes to get a dismissal of the verdict, or a new trial.
Most likely, Amazon and Hachette will soon come to an agreement and this mess will go away. In the meantime, shop elsewhere if you're looking for Hachette book titles.
Via: AppleInsider