Amazon Fights Publishers, Removes Their Books – Ethical Issue?

via bits.blogs.nytimes.com

Summary

Amazon is involved in a tug of war with publishers and authors. It has been holding certain books hostage by delaying shipping, and limiting customers’ ability to access and order them. The books are those from publishers such as UK’s Hachette, the fourth-largest publisher, Germany’s Bonnier Media Group and Macmillan. Amazon also removed its book discount from titles published by the above, returning the books to list price. In the process, increasing US price to twice what it is asking from UK customers.

Amazon started its business to help customers get access to cheaper books and a large database at their fingertips. It reduced the list price of books which made Amazon become the giant corporation it is now. This also edged out brick-and-mortar bookstores whose books were more expensive of rent tariffs. Amazon’s substantial market share has been giving authors and publishers concerns, as they fear that Amazon could abuse its considerable power – 65 percent of online book sales, both digital and print – one day.

Amazon is engaged in its present tussle with publishers because of its electronic book interest. A while back, Hachette and four other major publishers collided with Apple to force Amazon to shift from its ‘certain units at a fixed price’ buying model to a ‘commission on each unit’ buying model. The new proposed model would cut into Amazon’s profit and make it charge a larger price for e-books. For example, e-books would be priced at twice or triple its old usual cheap charge, which will undercut Amazon brand’s promise of cheaper books. And, it would have allowed other retailers to compete more fairly with Amazon. Amazon retaliated with a suit. The publishers settled with Amazon. Now, Amazon wants the publisher to lower the amount Amazon pays for e-books.

While it is easy to accept Amazon’s reason for fighting the publishers, Amazon often resorts to shady tactics to get what it wants. Only last year did Amazon punish writers who refuse to give Amazon e-books exclusivity. It cut the royalty of writers who did not give it exclusivity from the standard 70 percent to 30 percent. And, when Amazon and Macmillan had a minor and brief falling out in 2010, Amazon promptly deleted all buy buttons on Macmillan books. Amazon’s tactics often beg the question of ethics. Is it ethical to flex your muscles and hold an industry at stand point, just because you can and decide to? As much as I love Amazon, as a book lover and a writer in progress, I cannot help but think that Amazon needs to be checked.

Stakeholders

Amazon and publishers such as Melville House, Hachete and Bonnier Media Group: They’re both fighting each other, seeking to hold on to their individual power and seeing the other guy as the bad guy.

Independent Bookstores: independent bookstores have been struggling to keep up with Amazon but this is a plus for them. People can go back to buying books from them. For example, with the advertised 30 percent discount, Books-a-Million could do just fine if this power tussle goes on for long, especially if it offers online shopping.

Customers: book lovers have not being able to get recently released books from their favorite authors. I know how frustrated I can be when I cannot get a book I want online. I can count on my fingers the number of times I have stepped into a Barnes and Noble bookstore, apart from the one in school. When I first transferred to University of South Florida, I bought my books from USF’s bookstore, cringing each time at the price. I also hate brick and mortar shopping of any kind, such a time waster! It was heavens to switch to Amazon and I haven’t looked back yet. I assume there are other people like me.

The Authors Guild (TAG) and Germany Publishers and Booksellers Association (GPBA): both have weighed in on this matter, calling Amazon the bad guy. TAG says Amazon is acting illegally while GPBA believes Amazon is blackmailing the publishers. What’s the point of being in a union if it cannot protect your needs? This is why these two organizations are affected by this fight.

Writers: after the huddle of getting your book published, the last thing writers need is for an autocratic retailer to jack up the price and deprive readers of their work. Even worse is having Amazon refuse to take orders, take down their books or remove the buy button from their listing. Authors affected include: J.K Rowling who published The Silkworm under the pen name Robert Galbraith, Steven Colbert, James Patterson, Nina Laden, and many more. As for struggling new writers, they won’t fair too well.

Solutions:

Amazon prides itself from being customer-friendly. It should keep to its words and stop frustrating its customers. While I don’t have them, there must be other ways to fight the publishers without dragging customers and writers in the middle. There is no doubt that it is the latter two who will suffer the most if this fight continues to go on. Publishers can also pull all their books from Amazon and take them elsewhere. This would shake up Amazon and force it to play more fairly. 

Streitfeld, David, and Melissa Eddy. “As Publishers Fight Amazon, Books Vanish.” Bits.Blogs.Nytimes.com New York Times, 23 May 2014. Web. 24 May 2014.  < nyti.ms/1goXL4J>