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Amazon’s Sunshine Deals May Influence a Wider Range of Publishers’ Prices on Kindle … and That Would Be a Good Thing

Originally posted at BookGorilla.com

Over at his Kindle Review blog Abhi has been doing his usually fine job of following events in the Kindlesphere, and he turned his focus today on something we’ve been thinking about too: the effect of the Kindle Store’s wildly popular Sunshine Deals promotion on ebook prices generally.

In case you are wondering, our sister blog Kindle Nation Daily pretty much summed up Sunshine Deals with a June 1 bargain alert that said:

SUNSHINE DEALS at Kindle! This may be the biggest sale ever on desirable bestselling and backlist Kindle titles!

Bargain Alert! SUNSHINE DEALS at Kindle!

The summer reading season has officially begun with over 600 great Kindle titles for just 99 cents to $2.99 each at http://amzn.to/SunshineDeals!

It’s been natural enough to wonder how the Big Six price-fixing agency model publishers would respond to the Sunshine Deals initiative. Why should they respond? Sunshine Deals is just one more salvo in Amazon’s very effective multi-pronged strategy to provide customer-friendly Kindle Store prices — which to Amazon means prices at $9.99 and below.

As long as the Big Six publishers try to fight back by insisting on higher ebook prices, it’s not much of a fight. Sure, the publishers can get those $12.99 prices for ebooks by a few big-name bestselling authors, but as long as they hold prices at those levels for second-tier new releases, the overall result is that they are losing market share to ebooks whose prices hit Kindle readers’ sweet spot in the range from $7.99 all the way down to 99 cents.

Those very popular but less expensive ebooks are being offered up in increasing variety and selection by a growing range of authors and publishers, including:

  • thousands of direct-to-Kindle authors who range from new indie authors to bestselling traditionally published veterans like Ruth Harris and Paul Levine;
  • growing legions of small-press indie publishers;
  • relatively new publishing ventures such as RosettaBooks and Jane Friedman’s Open Road Integrated Media; and, of course,
  • Amazon itself and its growing list of publishing imprints such as AmazonEncore, AmazonCrossing, Montlake Romance and, for suspense fans, Thomas and Mercer.

Through most of the past year it has seemed as if the Big Six publishers would figure all of this out at roughly the same time that the last of them to leave their expensive Manhattan headquarters reached for the light switch on the way out. But now, finally, Abhi’s post today suggests that at least some publishers are embracing price competition in the real world:

“Publishers are waking up to the fact that someone other than them is selling a ton of books (at least if the rumors are true and Sunshine Deals really do exclude most of the Big 6),” he says, and points out that suddenly “there are a ton of Harper Collins novels on sale at $2.99 and $4.99.”

Could be a good sign. And we’re happy to hear that smaller, more nimble publishers like Twilight Times Books are stepping up to the plate, too!

“We appreciate our readers. 50 award-winning ebooks are on sale from Twilight Times Books for $2.99 via Amazon Kindle until June 15th. Historical, literary, mystery, SF, YA and more,” said Twilight Times publisher Lida E. Quillen in an email to Kindle Nation earlier today. Here’s a link to the entire Twilight Times Books catalog in the Kindle Store, featuring the bargain books just mentioned as well as quite a few others priced between free and $2.99!

I was especially pleased to see The Solomon Scandals by old pal and colleague David Rothman available from Twilight Times for 99 cents. It’s a terrific read.

CITI Analyst Estimates 16 Million Kindle Sales in 2011; 26 Million Kindles and 752 Million Kindle Books in 2012 … And We Think He’s Right

By Steve Windwalker
Originally posted at BookGorilla.com

Following up on our post over at Kindle Nation yesterday about Citigroup analyst Mark Mahaney’s predictions that the Kindle’s slice of total Amazon revenues will continue to rise this year and next, we note (via TechCrunch) that Mahaney has also increased his estimate of how many Kindle devices Amazon will sell this year from 16.5 million to 17.5 million units. In 2012, Mahaney projects another 26 million Kindles to be sold.

These are just projections, but they are pretty dazzling projections. And we think he’s pretty close.

Our sister blog Kindle Nation published a post back on January 13 — Just How Big is the Kindle Revolution? Our Estimates: Amazon Has Sold 12 Million Kindles, and There Were Over 10 Million Paid Kindle eBook Sales in the Last Week of 2010 — where we estimated Amazon’s Kindle unit sales had reached 12 million at that point in mid-January, including about 8 million Kindles sold during calendar year 2010. We went on to project that the “installed base” of Kindles would reach 22 million by the end of 2011 and 35 million by the end of 2012. I don’t recall anyone suggesting that our January numbers were conservative, but Mahaney has left us in the dust: his numbers translate into an “installed base” that that would be about 18% higher than our projection for the end of 2011 and about 50% higher than our projection for the end of 2012.

While the number of Kindles sold is important, the rubber actually hits the road when we look at Mahaney’s projection for the number of Kindle books sold over this period, because that’s where the ebook revolution is being fought, and those are the numbers that will be etched on traditional publishers’ gravestones — apparently much sooner than mainstream projections might have had us believe.

According to Mahaney:

  • there were 124 million Kindle books sold in 2010;
  • there will be 314 million Kindle books sold in 2011; and
  • there will be 752 million Kindle books sold in 2012.

We estimated back in January that Amazon had sold 10 million paid Kindle books during the final week of 2010, and given the fact that the final week of the year will always be far and away the biggest week of the year for ebook sales, this 10-million unit figure seems entirely consistent with Mahaney’s estimates. Taken together, the impact of these numbers is that we would not be surprised to see 25 million paid Kindle books sold the final week of this year, and 50 million next.

KND Kindle Free Book Alert, Wednesday, June 8: Search over 500 FREE TITLES by Category including FOUR BRAND NEW SMART AND SASSY READS! plus … Jennifer Rainey’s THESE HELLISH HAPPENINGS (Today’s Sponsor, 4.5 Stars, $0.99)

What’s in store for today? A great YA read for summer from Olivia Bennett plus Dating Mr. December, Seduced by the Wolf, and a hilarious male POV take on the world depicted by Sophie Kinsella in Shopaholic. Powered by our magical Kindle free book tool, here are this morning’s latest additions to our 500+ Kindle Free Book listings….
 

But first, a word from … Today’s Sponsor

Think “Dracula meets Faust” as a bumbling vampire, a persistent Satan and a surprise romance combine to make this a novel readers describe as fun, quirky, unique and brave…
 

These Hellish Happenings
by Jennifer Rainey
4.5 stars – 10 Reviews

Text-to-Speech and Lending: Enabled
Don’t have a Kindle? Get yours here.

“The author’s characters are wonderful, her story line kept me interested in what was happening to everyone, and she kept Hell….well disrespectfully hellish. 

–S. Painter



Here’s the set-up:

In 1707, hapless vampire Jack Bentley made a pact with the Devil in order to escape a vampire hunt. Dealing with Satan seemed better than your standard angry mob at the time. But three centuries later, Satan is ready to collect His dues, whether the vampire likes it or not. He’s taking Jack down to Hell, and He’s even got a job picked out for him down below: an eternal position at the Registration Office of the Damned.  

Jack attempts to adjust to life on the Administrative Level of Hell where fire and brimstone have been replaced by board meetings and the occasional broken copier. But the whiny complaints of the recently-deceased and the legions of suited, cookie-cutter demons are the least of his problems. Try adding to the equation a dead ex-lover, a dangerous attraction to his high-ranking demon companion, Alexander Ridner, and the sticky and distorted anti-vampire politics of a Hell that is surprisingly like our own world.


 

What the Reviewers Say
“Ms. Rainey’s writing was assured and easy to read… The book is written in a humorous and just slightly satiric tone – something that is very hard to sustain throughout an entire book (and there are a few laugh out loud moments). I thoroughly enjoyed the book and would definitely recommend it.” 

–esm4, Vine Voice


About the Author 

Jennifer Rainey was raised by wolves who later sold her to gypsies. She then joined the circus at the age of ten. There, she was the flower girl in the famed Bearded Bride of Beverly Hills show until the act was discontinued (it was discovered that the bearded lady was actually a man). From there, she wandered around the country selling novelty trucker hats with vaguely amusing sayings printed on front. Somehow, she made enough money to go to The Ohio State University for a major in English.

Click here to download These Hellish Happenings (or a free sample) to your Kindle, iPad, iPhone, iPod Touch, BlackBerry, Android-compatible, PC or Mac and start reading within 60 seconds!

UK CUSTOMERS: Click on the title below to download
Each day’s list is sponsored by one paid title. We encourage you to support our sponsors and thank you for considering them.

Authors and Publishers: Interested in learning more about sponsorship? Just click on this link for more information.

 

Free Contemporary Titles in the Kindle Store
Welcome to Kindle Nation’s magical and revolutionary Free Book Search Tool — automatically updated and refreshed in real time, now with Category Search! Use the drop-down menu (in red caps next to the menu bar near the top of the page) to search for free Kindle books by genre or category, then sort the list just the way you want it — by date added, bestselling,, or review rating! But there’s no need to sort by price — because they’re all free!
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When a Yuletide festival promises jovial crowds, resident artist and chef, Mist, knows she’ll have her hands full, as will all of the regular townsfolk. Between Mist’s legendary Christmas Eve dinner at the Timberton Hotel and this season’s festival events, guests will be surrounded with...
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Embark on the Journey of a LifetimeImagine living a life of unparalleled peculiarity, a quiet existence that subtly defies every norm. Meet Gabriel Stone, a man whose life journey begins with mystery—found as an infant in the remote terrains of Broken Hill, Australia, with no trace of lineage to...
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Alone on the night shift, rookie television reporter Ellie Schimmel responds to a personal injury accident downtown. She's not excited--she's covered several before. But after driving to the scene, she realizes it's her first hit-and-run. What she learns covering this story makes her question...
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Dimes to Dollars: Kindle’s Slice of Amazon Revenues Rising

Citigroup analyst Mark Mahaney now predicts that Amazon’s Kindle business will make up almost 10 percent of Amazon’s revenues in 2012.

Mahaney said Kindle revenues (which include eBooks and devices) were $2.5 billion last year, or 7.2 percent of Amazon’s total. He says that Kindle revenues will hit $3.8 billion this year (8 percent of projected revenues) and $6.1 billion in 2012 (9.9 percent of projected revenues).

Via TechCrunch.

Publetariat Dispatch: The Ebook Quandary

Publetariat: For People Who Publish!
In this week’s Publetariat Dispatch, indie bookseller Bob Spear offers a survey of different ereader devices and comments on ebook pricing trends from the bookseller’s perspective.

 
Last week marked the occasion for the 6th annual Winter Institute presented by the American Booksellers Association for their independent bookseller members. There was a lot of important information shared. I’d like to address how the technology and concepts of e-books are affecting the book industry. First, lets compare the different e-readers from the perspective of independent booksellers.
 
 
iOS-based (iPad/iPhone/iPod Touch:
Price= from $499 (iPad) from $99 w/contract (iPhone) from $199 (iPod)
Availability: Apple Store, AT&T, Best Buy, Walmart, etc.
Google Ebooks Compatible: Yes – Google Books App available through App Store
Ingram Ebooks Compatible: Yes – Palm/iPhone format compatible with eReader app (available thru App Store)
Should I recommend it? PROS: Best experience for indie ebook buyers. Both Google and Ingram offer easy access paths to eBooks on iOS devices. Huge existing install base. CONS: Expensive.
 
 
Android-based (Motorola Droid, Samsung Galaxy Tab, etc.)
Price= from $49 with contract (DROID) $169 (Galaxy)
Availability: Various retailers, online
Google Ebooks Compatible: Yes – Google Books App available through Android Marketplace
Ingram Ebooks Compatible: Yes – Palm/iPhone format compatible with eReader app
Should I recommend it? PROS: Inexpensive, availability of Google. Books app means easy access for your customers. Early reviews are good. CONS: Not as many of these in the wild yet, and few being used as e-readers. Expect a lot of growth in the # of these devices in 2011.
 
 
Nook, Nook Color
Price= $149 (Nook) $249 (Nook Color)
Availability: B&N, also Best Buy, Target
Google Ebooks Compatible: Yes – Use Adobe Digital Editions Download option
Ingram Ebooks Compatible: Yes – Adobe Digital Editions format
Should I recommend it? PROS: Both Nook versions have received good reviews. Customers who prefer a dedicated e-reader will find much to like. CONS: Adobe Digital Editions is not nearly as easy to use to sync indie ebook purchases as iOS apps. Wireless download is B&N only.
 
 
Sony Reader
Price= from $149 (Pocket Edition)
Availability: Sony Store, Best Buy
Google Ebooks Compatible: Yes – Use Adobe Digital Editions Download option
Ingram Ebooks Compatible: Yes – Adobe Digital Editions format
Should I Recommend It? PROS: Some unique features (smaller size, touch screen). CONS: Some say these are difficult to use. Adobe Digital Editions sync. Wireless store (on Daily Edition) links only to Sony.
 
 
Kobo
Price= $139
Availability: Borders, other retailers
Google Ebooks Compatible: Yes – Use Adobe Digital Editions Download option
Ingram Ebooks Compatible: Yes – Adobe Digital Editions format
Should I Recommend It? PROS: Inexpensive. CONS: Limited market penetration, Adobe Digital Editions sync.
 
 
Other ereader devices (e.g., Pandigital Novel, COOL-ER, etc.)
Price= Varies
Availability: Varies
Google Ebooks Compatible: Most do support Adobe Digital Editions. For a complete list, see: http://adobe.ly/cgNsDr
Ingram Ebooks Compatible: Same
Should I Recommend It? PROS: Some could be extremely inexpensive. CONS: Wildly varying user experience. Some devices may be buggy. ADE sync.
 
 
Amazon Kindle
Price= from $139
Availability: Amazon, Best Buy, Target, Walmart
Google Ebooks Compatible: NO
Ingram Ebooks Compatible: NO
Should I Recommend It? Customers will not be able to buy books from you for their Kindle.
 
One important factor of the above comparisons is that the very popular Kindle has been purposely limited to Amazon ebook formats only. Obviously this works just fine for Amazon. Last year Amazon sold more ebooks than print books. Another important factor for publishers is that you need to produce your ebooks in all the above formats. That can be expensive if you have to purchase all the format translators. A better way to go is with SmashWords.com. They have a translation software that takes a Word file and automatically translates it to 7+ ereader formats and then distributes them to Amazon, BarnesAndNoble.com, Apple, etc.
 
 
The major publishers have jumped on the ebook bandwagon in a big way. Let’s see who the major players are:
 
Random House 22%
HarperCollins 15%
Hachette 13%
MacMillan 13%
Simon and Schuster 13%
Other 24%
 
 
The top categories are:
General Fiction 12%
Literary Fiction 11.5%
Mystery/Suspense 8%
Sci Fi/Fantasy 7%
 
 
The Average Price Point was $10.83

Pricing of ebooks by publishers has become a major issue arising in two approaches. The Wholesale Model is the traditional approach where the publisher sells to distributors and booksellers at a discounted wholesale price, who in turn resell it. Instead, some publishers are using the Agency Model, where the publisher sells directly to the public and gives an agent commission to the booksellers enabling the sale. Here is how these two models split out last year:

Agency= 55%

Non Agency Discounted= 15%

Non Agency Full Price= 30%

The top ten bestselling ebook titles last year were:

  1. Freedom (MacMillan)
  2. Autobiography of Mark Twain (University of California Press)
  3. Cleopatra (Hatchette)
  4. Squirrel Seeks Chipmunk (Hachette)
  5. Unbroken (Random)
  6. The Girl Who Kicked the Hornet’s Nest (Random)
  7. Moonlight Mile (HarperCollins)
  8. Object of Beauty (Hachette)
  9. Crooked Letter, Crooked Letter (HarperCollins)
  10. Room (Hachette)

Competition is driving some interesting steps forward for ebook selling. Now giant Amazon is being directly challenged by giant Google with their 3,00,000 ebook titles. These will be sold by independent booksellers who use the American Booksellers Association IndieBound.com web hosting system. Ingram is being challenged by their major rival, Baker and Taylor Distributors, who will be selling ebooks within the next two months.

Up till now, small presses and self-publishers have had a fairly clear playing field because their non-traditional capabilities to react to developing technologies quickly. Now the big boys have waded in and are trying to recapture market control. Still, the big guys are still flailing. As a proponent of long-tail marketing, I think the little guys still have the advantage in supporting niche markets. The secrets of future small press successes will be to: keep on top of developing technologies and continue to take advantage of your quick reaction time to industry changes. Indie booksellers have a much more difficult challenge to keep providing beloved print books while figuring out how to sell ebook downloads against Amazon et al.

This is a reprint from Bob”>http://www.sharpspear.com/BobSpear.html”>Bob Spear‘s Book”>http://bobspear.wordpress.com/2011/02/01/the-e-book-quandry-by-bob-spear/”>Book Trends blog.

Kindle Free Book Alert, Tuesday, June 7: NINE (9) BRAND NEW FREEBIES TODAY! plus … Washington, D.C., June 1863: It is the week before Gettysburg, and the nation’s fate hangs in the balance, in Timothy Woods’s GRANT ME TIMELY GRACE (Today’s Sponsor, 4.5 Stars, $2.99)

With brand new freebies like Georgette Heyer’s Cotillion and Alison Pensey’s The Amulet sitting newly atop this morning’s latest additions to our 600+ Kindle Free Book Alert listings, there are plenty of intriguing reads. But DID YOU KNOW that, if the newest-first listing ever seems a bit stale to you, you can easily use our free book tool pull-down menus to sort the list by bestselling status or reader review ratings?


 

But first, a word from … Today’s Sponsor

In the words of one historian, the Civil War is “the American Iliad” – Here’s a historical novel that brings that truth to life: Timothy Woods’ GRANT ME TIMELY GRACE – 4.5 stars – just $2.99 on Kindle! 

Wealth, conspiracy, power, passion and integrity come together in this Civil War novel, taking place a week before Gettysburg.

Grant Me Timely Grace … is highly recommended for those who enjoy historical fiction, especially fiction related to the Gettysburg Campaign.”
—-Ken Williams, TOCWOC – A Civil War Blog


Grant Me Timely Grace
by Timothy Woods
4.5 out of 5 stars  2 Reviews
Text-to-Speech: Enabled
Don’t have a Kindle? Get yours here.

With Robert Redford’s THE CONSPIRATOR in theatres, here’s a Civil War novel with a strong feminist theme that will appeal to men and women alike.

Timothy Woods’ moving historical novel is informed by thorough research, a sense of its characters’ weariness with war,  and an understanding of the war’s international dimensions.



Here’s the set-up:

Washington, D.C., June 1863. It is the week before Gettysburg, and the nation’s fate hangs in the balance.

A Union officer was not court-martialed after disobeying a direct order during battle. Why?

Major Russell Johns is being played by puppet-master, Gerard Chantier. Transplanted New Orleans businessman and toast of the town. Chantier hosts the city’s most lavish entertainments attended by members of Lincoln’s cabinet and Washington’s elite.

Little do they know Gerard is coordinating an attack with Confederate general JEB Stuart’s cavalry to take over the city, kidnap Lincoln and bring victory to the South.

When Russell’s probing brings him in contact with Chantier’s daughter, Thérèse, he has to face his most difficult moral choice: manipulating her to get to her father or honoring the one thing that has sustained him through years of battle and loss—his own integrity.

 


 

What the Reviewers Say
“I thoroughly enjoyed the story and the writing. Rich and descriptive, I could imagine I was watching a movie as I read through each scene. The characters were deep and well developed and became very real to me. This one is a must for any Civil War buff, history buff and really anyone who enjoys engaging and well-written novels; it certainly transcends its genre.”
–Jennifer C

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Embark on the Journey of a LifetimeImagine living a life of unparalleled peculiarity, a quiet existence that subtly defies every norm. Meet Gabriel Stone, a man whose life journey begins with mystery—found as an infant in the remote terrains of Broken Hill, Australia, with no trace of lineage to...
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