1. Does anybody out there believe Macmillan wants to sell electronic books? I don’t think they do.
There was an exciting and dramatic showdown this weekend between Amazon.com and Macmillan, the parent company of many top book publishers including Farrar Straus Giroux, Times Books and Tor. Amazon wants to price e-books at $9.99. Macmillan wants to price e-books higher and introduce tiered pricing so that an e-book costs more when it’s new. Amazon tried to kick Macmillan where it hurts by suddenly refusing to sell their books on Amazon.com, cleverly timing this surprising move for a weekend so as to blunt the press response. Macmillan held strong and Amazon gave in on Sunday afternoon.
Most of the commentary has followed the “Amazon blinked!” line. Obviously their gambit failed, and their strategy in threatening access to Macmillan’s books does not seem to have been well-chosen. Their strategy in pulling this stunt on a weekend failed too, because this is the weekend between the NFL playoffs and the Super Bowl and the suspenseful Amazon/Macmillan standoff only provided the gridiron battle football fans were missing. Still, I’m not joining the anti-Amazon cheering section today, because I believe a $9.99 price point will help e-books flourish. Book publishers are wary of e-books, and may use higher price points as part of a strategy to discourage and delay customer acceptance of electronic publishing.
If you’ve been around here a while, you know where I stand on book pricing. I think premium-level/tiered pricing is an archaic and dysfunctional tradition that discourages impulse buying and customer experimentation. I don’t understand why Amazon thought this weekend’s showdown would work, and I also don’t understand their use of the word “monopoly” to describe Macmillan (of course a book publisher has a monopoly on its own titles!). But Amazon is trying to create a new electronic marketplace for books, and Macmillan’s action to tightly control e-book pricing amounts to a chokehold for this marketplace. I’ll ask it again: does anybody out there really believe Macmillan wants to sell e-books at all? Sure, just as much as record companies want to sell MP3s instead of CDs.
This was a fair battle and Macmillan won, but the e-book pricing situation reminds me of Barack Obama’s smart question about health care reform during this week’s State of the Union address: “does anybody have a better idea?”. Macmillan’s victory is a victory for traditional premium/tiered book pricing. MobyLives’s closing line above says it best: “this ain’t over yet”.
2. I’ll be part of a panel discussion titled “The Oldest Media Goes Social” this Wednesday at 12 noon in New York City, along with author A. J. Jacobs, publicists Natalie Lin and Meryl Moss and BlogAds.com entrepreneur Henry Copeland.
3. Notable novelists playing cards. Shut up and deal …