Law in the Internet Society

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MiaLeeFirstPaper 13 - 09 Dec 2011 - Main.MiaLee
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E-book Self-Publishing: Instant Gratification, at What Cost?

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 A once-weary Konrath now sits comfortably at home while his Kindle sales drive tens of thousands of monthly profits in the background, a few dollars at a time. The same can be said for Amanda Hocking, who went straight from unsigned blogger to Kindle millionaire, pricing her works in the "impulse buy" range of $.99 to $3. Their success, however, is uncommon: to date, only 56 writers have sold 100,000 or more e-books on Amazon.
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As some self-made authors take the reigns of their digital careers, spurned Big Six publishers strive to cannibalize their cut of e-book revenues. Displeased that more than eighty percent of Kindle titles have been priced at $9.99 or less, the Big Six joined Apple to pressure Amazon into dropping its wholesale strategy in favor of their agency model. With wholesaling, Amazon bought titles at a bulk discount and set its own resale prices; under the agency model, publishers set list prices ($12.99+) and pay the online retailer a ~30% commission on sales. Amazon caved to the demands, but the Big Six/Apple bullies are now subject to a class action antitrust lawsuit for conspiring to fix prices.
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As some self-made authors take the reigns of their digital careers, spurned Big Six publishers strive to cannibalize their cut of e-book revenues. Displeased that more than eighty percent of Kindle titles have been priced at $9.99 or less, the Big Six joined Apple to pressure Amazon into replacing its wholesale strategy with their agency model. With wholesaling, Amazon bought titles at a bulk discount and set its own resale prices; under the agency model, publishers set list prices ($12.99+) and pay the online retailer a ~30% commission on sales. Amazon caved to the demands, but the Big Six/Apple bullies are now subject to a class action antitrust lawsuit for conspiring to fix prices.
 Penguin also launched its own self-publishing platform last month, BookCountry? , which quickly garnered scathing reviews from Konrath and other authors. BookCountry imposes steep fees and meager revenue shares on literary hopefuls: joining requires a $99 to $549 outlay for formatting/design services, and rev shares drop 30% in comparison to Amazon's program because Penguin has re-inserted itself as an intermediary. Furthermore, Penguin restricts authors' DRM choices; whereas all Amazon self-publishers can choose to post their works DRM-free, BookCountry? prohibits DRM-free publishing for all works over $2.99 (which, incidentally, are the works that qualify for higher rev share).
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 At best, dominant player Amazon offers aspiring authors an unprecedented chance to make a living from their creative talents; at worst, it and the Big Six seed writer dependence for their cartel's benefit. But how does the growing e-book market affect readers?
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Kindle partnerships with libraries and schools can improve students' web-based reading comprehension and overall enthusiasm for literature in our tech gadget-obsessed society. As high school librarian Buffy Hamilton points out in the above article, the Kindle enables self-conscious teens to privately read different books without incurring their friends' ridicule. (It's too bad this aversion to literature exists in our society, but at least the Kindle tries to help). Such partnerships would go even farther if Amazon would heed librarians' requests to relax the six-device sharing limit imposed on Kindle files.
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Kindle partnerships with libraries and schools can improve students' web-based reading comprehension and overall enthusiasm for literature in our tech gadget-obsessed society. As high school librarian Buffy Hamilton points out in the above article, the Kindle enables self-conscious teens to privately read different books without incurring their friends' ridicule. (It's too bad this literary squeamishness exists in our society, but at least the Kindle tries to help). Such partnerships would go even farther if Amazon would heed librarians' requests to relax the six-device sharing limit imposed on Kindle files.
 
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More broadly speaking, critics bemoan the commoditization of literature. At the $.99 price point, books stop existing as cherished tomes, handpicked after an afternoon spent browsing curated titles at the local store, and assume new life as impulse purchases made because the cover art was flashy. The Kindle market place has been littered with spam, and with each additional purchase, the Web giant gains incremental knowledge of how to price discriminate among us. France and Germany have laws against selling books below cost to prevent this loss of local culture, meanwhile, Amazon hawks its discount-bundled, price scanning app in an effort to divert in-person purchases back to its site.
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More broadly speaking, critics bemoan the commoditization of literature. At the $.99 price point, books stop existing as cherished tomes, handpicked after an afternoon spent browsing curated titles at the local store, and assume new life as impulse purchases made because the cover art was flashy. The Kindle market place has been littered with spam, and with each additional purchase, the Web giant gains incremental knowledge of how to price discriminate among us. France and Germany have laws against selling books below cost to prevent this erosion of local culture, meanwhile, Amazon hawks its discount-bundled, price scanning app in an unabashed effort to divert in-person purchases back to its site.
 

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Revision 13r13 - 09 Dec 2011 - 05:14:01 - MiaLee
Revision 12r12 - 09 Dec 2011 - 01:53:30 - MiaLee
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