The dispute between Amazon.com, Inc (NASDAQ AMZN) and the publisher Hachette continues, with Amazon firing the latest shot. The online retailer Amazon reportedly sent letters to some authors published by Hachette and their agents, offering them 100% of their e-book revenue.
An Amazon spokesperson said that Hachette should stop using its authors as “human shields” because Hachette’s parent company sees so little from e-book sales that it can afford to give authors 100% of e-book revenues.
Previously several prominent authors published by Hachette wrote a letter attacking Amazon for the tactics it has used during the negotiations. Douglas Preston wrote the letter which was then signed by James Patterson, David Morrell, and other well-known writers.
Amazon.com, Inc (NASDAQ AMZN): The dispute
Amazon has been fighting with Hachette to get a bigger share of revenue from e-books as well as lower prices for e-books. The dispute between the two companies has the potential to greatly impact the future of the entire book industry. Unfortunately the authors are the ones being punished by the spat, as they aren’t selling any books.
The offer from Amazon is likely aimed at winning Hachette authors over to its side. In rejecting Amazon’s offer, Hachette reportedly made a comment about it being “suicide” to give authors 100% of e-book revenue. Amazon responded by noting that Hachette belongs to a massive $10 billion conglomerate, so the retailer said the publisher can afford to give up its e-book revenue.
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Amazon.com, Inc (NASDAQ AMZN) Business News
Amazon made up 60% of Hachette’s U.S. e-book sales in the U.S. last year, so giving up all that revenue would impact the publisher. However, Amazon wouldn’t take much of a hit because it sells so many other types of products. As a result Maxim Group analyst John Tinker told The Wall Street Journal that Amazon’s proposal is just a PR stunt aimed at improving its reputation with Hachette’s authors.
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