All Your Base Are Belong To Amazon

This post, from Eoin Purcell, originally appeared on his Eoin Purcell’s Blog on 5/14/09.

Sometimes you get tired of being outmaneuvered
In some senses, what Amazon launched yesterday with Amazon Encore is neither that amazing a project, after all there have been several small-press or self-published titles taken on board by large publishers as I’ve mentioned on this blog before, nor is it even that innovative, Authonomy is at its core a way to tap the self published and slush-piled manuscripts out there in the wild.

But the key point is that this moves Amazon directly into the role of publisher as James Bridle makes clear on his post on the topic:

"It’s been a while coming, but some of us have been predicting this move for some time: Amazon have finally made it to the penultimate step on the publishing chain. I say penultimate, because although they are now, by any definition, a publisher, they still appear to be cherry-picking from existing books rather than seeking out their own authors."

I think this move suggests a couple of key questions:

    1) Who benefits most from this (and conversely who hurts the most because of it)?
    2) Can it be extended?
    3) Will there be a reaction?

First, Cui bono
On the face of it, this seems like an amazing opportunity for the author, reading her Amazon blog she certainly seems happy. Amazon’s platform (and as Personanondata point out platform is pretty key) allows for so many things that the average (or small press) publisher cannot. View for instance the neat homemade (and windy) video that amazon have on the main product page. The extra push that Amazon can give a product is really impressive. It will certainly be interesting to see how this works. I think it is fair to say then that the author gets a fair shake of this tail, though it would be interesting to see how the royalties split out.

As for the publisher who backed the book in the first place (always assuming that this encore element remains true) the deal is a win-win. So long, that is as rights for the project were acquired to begin with. A smart author would try and retain the rights for any potential Amazon Encore deal if that was even remotely possible. but allowing for the rights being with the publisher, they will surely gain something from the deal, though if the split of revenue is as one sided as in the case of the new amazon blogs-on-kindle deal (70-30 in favour of amazon) it’ll not be a huge amount. So there is a sense that the publishers who are “chosen” will benefit. But a note of caution from two sources Personanondata & James:

"Amazon as producer is a subtle but important change in the operations of the largest retailer. I often mull what would happen to some of the largest publishers if they lost their top two or three authors to Google or Amazon. It may be that the Amazon Encore program sets the stage for a much larger program by Amazon to establish their own publishing and media production operation – their content supply – that feeds their retail presence. There may be further ramifications from this seemingly innocuous press release."

"Those who suggest they’ll just keep picking stuff up from the little guys hasn’t been paying attention. In the last five years Amazon have, in addition to dominating online bookselling, bought a book social network, a major print-on-demand supplier, a complete end-to-end self-publishing system, pretty much the entire used books marketplace, the biggest audiobook distributor, the best iPhone ereader, and designed, built and delivered the only truly mass-market dedicated ereading device, with a proprietary format that sets them up to be the iTunes of eBooks.* It’s big, it’s scary, it’s Amazon. But the publishing industry is under so many different pressures at the moment, this is unlikely to be as big as it could be: Amazon don’t want to annoy their major suppliers, not too much, and not yet. They will though, and by that point, they’ll be past caring. Like Google with their ebooks programme, they’ve been given so much leeway for so long, they think they can do whatever they like, and chances are, they’re right."

So, there is a benefit but they might just eat publishers’ lunch next week, next month, next year or next decade!

Read the rest of the post (be sure to read through the excellent comments thread, too) on Eoin Purcell’s Blog.

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