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Senior Executive Indicates Random House Could Steer Clear of Price-Fixing Cabal

Thanks to Bufo Calvin at I Love My Kindle for turning my attention to some fascinating remarks last week by Madeline McIntosh, who returned to Random House in early November in the newly created position of President, Sales, Operations, and Digital. Speaking in San Jose at the Winter Institute of the American Booksellers Association, McIntosh separated herself and Random House dramatically from what had previously seemed like lockstep among Big Six publishers around issues of pricing control over ebooks.

According to a report at Publishers Lunch:

McIntosh took on pricing control directly as one of the reasons Random House has “not acted quite as quickly as others.” She expressed a series of concerns that publishers “have no real experience at setting retail prices….”

She cited a recent visit to Powell’s, where with used books and new books sitting on the same shelves “they set the prices on every single unit in a unique, demand-based way.” But more importantly from her perspective, up until now “our authors have not been at risk if you make a different decision about how to price a given book, so it didn’t actually affect our author if a given retailer decided to aggressively discount a certain segment of books. The benefit…is that we have been able to sustain a great variety of different authors at different levels.”

On the windowing of releases, McIntosh expressed a personal opinion and noted “there are a lot of divergent opinions at Random House,” but she is “not convinced that delaying an ebook will be to the benefit of either the author or the consumer.” She prefers not to lose a potential sale because an ebook version is not available and also does not want to “create an adversarial relationship” with ebook readers or “train those readers that instead the best way to get that digital copy is to download it for free.”

Instead of through changed pricing models, McIntosh said “the best value we can offer in the digital world will be about embracing what we already know how to do well…. Our best asset is our editors.” She spoke about “allowing digital to force us to reinvent ourselves as editors” as Random looks at ways “to contract and deliver content that is a whole range of different lengths, and bring ideas to market in a much faster way than we can when its print.” For the future, she is less excited about “just about creating a digital version of a book or adding bells and whistles” but wonders instead “do we need to push ourselves into an area we really don’t know anything about, which is thinking about developing applications.” She sees the process as taking a brand and conceiving of “what would be compelling to a consumer…that would make us still relevant as a content producer” in a new way, admitting that they don’t have the answers yet–just the question.

It’s good to see some engaged, intelligent, independent thinking by someone in a position to influence how the ebook pricing saga may actually play out.

Kindle Nation Daily Free Book Alert for Tuesday, February 9, 2010: Star Wars: Lost Tribe of the Sith #3: Paragon and more!

Star Wars: Lost Tribe of the Sith #3: Paragon by JOHN JACKSON MILLER  


Star Wars: Lost Tribe of the Sith #2: Skyborn by JOHN JACKSON MILLER 


Star Wars: Lost Tribe of the Sith #1: Precipice by JOHN JACKSON MILLER

Change the World: Recovering the Message and Mission of Jesus 
by Michael B Slaughter

Edge of Apocalypse Free Preview Only (Equivalent of about 35-40 pages despite metadata that indicates longer) by Tim LaHaye and Craig Parshall

Devotions for Lent

  
The Apothecary’s Daughter by Julie Klassen (Jan 1, 2009)

Talk of the Town Lisa Wingate (Mar 1, 2008)

Daisy Chain (Defiance Texas Trilogy, Book 1) Mary E. DeMuth (Mar 1, 2009)

Peculiar Treasures (The Katie Weldon Series #1) Robin Jones Gunn (Apr 1, 2008)

Velvet Elvis: Repainting the Christian Faith Rob Bell (Jul 1, 2006)

Icy Heat: A Heat series story by Leigh Wyndfield

John Newton: From Disgrace to Amazing Grace by Jonathan Aitken (Jun 7, 2007)

His Lady Mistress
Slow Hands (Harlequin Blaze)

 

Kindle Nation Daily Free Book Alert for Monday, February 8, 2010: Autobiography of a Yogi by Paramhansa Yogananda, and Nine Glitchy "Titles" to Avoid for Now

Here’s one we haven’t mention for a while – a classic of Eastern mysticism:

Autobiography of a Yogi by Paramhansa Yogananda 

Meanwhile, you may notice that there are nine new “free” titles that you will want to avoid, for now, in the Kindle Store:

As we mentioned in a post yesterday, Amazon is beginning to venture into the world of book publishing with unique content that comes to it through programs such as the Amazon Breakthrough Novel Award Contest, and it appears we’ll soon be able to read excerpts from works by the contest quarterfinalists, free, right on our Kindles. Perhaps we’ll even be invited to cast out votes, ratings or recommendations!

That’s all well and good, but currently there’s a bit of a glitch in the system, as nine of these “titles” show up in the Kindle Store with listings such as this one, and they are currently just placeholders:

Quarterfinalist 9 (Kindle Edition) by ABNA entrant9 (Author) 

If you click on the “Buy” button on any of these 9 pages, it will downloaded to your Kindle and your account will be charged $0.00 (or over two buck in most countries outside the US!), but for now all you will find if you click on the title on your Home screen will be what you see in the screenshot at the right.

No harm, no foul?

Not exactly. The problem is that eventually these “placeholders” will be replaced by free content that you may want to read, but you won’t be able to download the updated content as long as the placeholder is in your Kindle account. Merely deleting it from your Kindle yourself won’t be enough of a purge.

So, two suggestions here:

  • First, if you’ve already downloaded any of these “titles,” I recommend that you contact Kindle Support (Kindle Support Phone Number 1-866-321-8851 or 1-206-266-0927 outside the US) and ask that they be removed from your Kindle so that you will be able to download it later when the content is live. We’ll have a heads up here at Kindle Nation Daily when the titles are live.
  • Second, it’s for reasons such as this that I always recommend buying content via the computer (rather than via the Kindle) whenever it is convenient, because a quick look at the file size — 3 KB in this case — usually tells me whether I am getting a full book (generally over 100KB), an excerpt (generally over 20 KB), or something less.

Obviously, from the fact that all nine of these placeholder titles made the Kindle Movers & Shakers List yesterday, one can infer that a lot of people downloaded the placeholder page. So it seems that a third suggestion is in order, to Amazon, to fix this well-intentioned glitch, because it is eating up time for Kindle owners and will no doubt lead to a lot of wasted time for Kindle Support and unnecessary bandwidth usage, even at this tiny file size, for the downloading process.

Kindle Nation Daily Bargain Book Alert for Friday, February 5, 2010: 50 for Under a Buck

There are big changes afoot in the Kindle Store, and it is likely — at least until we hear definitive news to the contrary directly from Amazon — that in a few months a much smaller portion of the store’s offerings will be as affordable as they are today. Three of the Big Six publishers (MacMillan, HarperCollins, and Hachette) have joined together under the collusive anti-reader price-gouging auspices of the BS Cabal to announce that they will soon raise ebook prices by 30 to 50 percent, and Amazon itself said recently that beginning later this year it would pay 70 percent royalties to its indie ebook authors, but only if they priced books at $2.99 and up.

So I thought it would be a good time to celebrate this moment of great 99-cent Kindle Store offerings by helping the citizens of Kindle Nation find some of the hidden offerings priced at less than a dollar, with lists here of Intriguing Recent Releases, the 99-Cent Kindle Store Bestseller List, Great Blogs for 99 Cents a Month, Literate Erotica at 99 Cents a Pop, and Five Other 99-Cent Bargains by Yours Truly:

Ten Intriguing Recent Releases for Under a Buck
 

The 99-Cent Kindle Store Bestsellers’ List

  
 
Five Other 99-Cent Titles by Yours Truly
(When Amazon initiates its new $2.99+ pricing and 70%-royalty structure, I will have decisions to make on some of these. But for now, they are all priced under a dollar)

 

MacMillan CEO Says "Time is Getting Near to Hand" for Return of Amazon’s Buy Buttons for MacMillan Titles

File this one, perhaps, under “If a tree falls in the forest….”

If “Buy” buttons are restored to MacMillan’s new-release ebook titles at prices of $12.99 to $14.99 in the Kindle Store, will anyone pay attention to the buy buttons?

In a paid advertisement that appeared on the Publisher’s Marketplace website today, MacMillan Publishing CEO says the following:

To: Macmillan Authors and Illustrators

cc: Literary Agents

From: John Sargent

I am sorry I have been silent since Saturday. We have been in constant discussions with Amazon since then. Things have moved far enough that hopefully this is the last time I will be writing to you on this subject.

Over the last few years we have been deeply concerned about the pricing of electronic books. That pricing, combined with the traditional business model we were using, was creating a market that we believe was fundamentally unbalanced. In the last three weeks, from a standing start we have moved to a new business model. We will make less money on the sale of e books, but we will have a stable and rational market. To repeat myself from last Sunday’s letter, we will now have a business model that will ensure our intellectual property will be available digitally through many channels, at a price that is both fair to the consumer and that allows those who create and publish it to be fairly compensated.

We have also started discussions with all our other partners in the digital book world. While there is still lots of work to be done, they have all agreed to move to the agency model.

And now on to royalties. Three or four weeks ago, we began discussions with the Author’s Guild on their concerns about our new royalty terms. We indicated then that we would be flexible and that we were prepared to move to a higher rate for digital books. In ongoing discussions with our major agents at the beginning of this week, we began informing them of our new terms. The change to an agency model will bring about yet another round of discussion on royalties, and we look forward to solving this next step in the puzzle with you.

A word about Amazon. This has been a very difficult time. Many of you are wondering what has taken so long for Amazon and Macmillan to reach a conclusion. I want to assure you that Amazon has been working very, very hard and always in good faith to find a way forward with us. Though we do not always agree, I remain full of admiration and respect for them. Both of us look forward to being back in business as usual.

And a salute to the bricks and mortar retailers who sell your books in their stores and on their related websites. Their support for you, and us, has been remarkable over the last week. From large chains to small independents, they committed to working harder than ever to help your books find your readers.

Lastly, my deepest thanks to you, our authors and illustrators. Macmillan and Amazon as corporations had our differences that needed to be resolved. You are the ones whose books lost their buy buttons. And yet you have continued to be terrifically supportive of us and of what we are trying to accomplish. It is a great joy to be your publisher.

I cannot tell you when we will resume business as usual with Amazon, and needless to say I can promise nothing on the buy buttons. You can tell by the tone of this letter though that I feel the time is getting near to hand.

All best,

John

How Much Money is Publishing’s BS Cabal Leaving on the Table? 10 Million eReaders to Be Shipped in 2010, Says Leading Display Manufacturer PVI

By Stephen Windwalker
(Originally posted February 4, 2010 at Kindle Nation Daily – © Kindle Nation Daily 2010)

Prime View International (PVI), the Taiwanese company that bought Cambridge, MA-based eInk last year and is the leading manufacturer of display components used in the Kindle and several other ereaders, anticipates now that as many as 10 million ereaders could be shipped in 2010, reports Digitimes’ Susie Pan from Taipei. Prior to this statement by PVI chairman Scott Liu, most estimates of 2010 ereader shipments have been around 6 million.

It is not known whether PVI’s projections are intended to include figures for 2010 shipments of non-dedicated devices such as Apple’s new iPad, which is slated to begin shipping in late March and by some accounts could account for sales in the 3 to 5 million unit range in 2010.


So, if the US book publishing industry’s BS Cabal (the Big Six publishers and Apple’s Steve Jobs) continue to base their strategies on a belief that they can resist the ebook revolution and pursue collusive  anti-consumer pricing and content withholding schemes, one wonders:

  • How much money they will leave on the table before they get it?
  • How many independent and/or traditionally published authors will just decide to connect directly with new technology platforms like the Kindle’s Digital Text Platform in order to make their books available and cut out the middle men so that they can enjoy all of the coming 70 percent royalties?
  • How many readers will reject the traditional publishers’ roles as gatekeepers and arbiters of taste, gradually shift their attentions to more and more independent authors and publishers?

Kindle Nation Daily Free Book Alert for Thursday, February 4, 2010:

Devotions for Lent


  
The Apothecary’s Daughter by Julie Klassen (Jan 1, 2009)

Talk of the Town Lisa Wingate (Mar 1, 2008)

Daisy Chain (Defiance Texas Trilogy, Book 1) Mary E. DeMuth (Mar 1, 2009)

Peculiar Treasures (The Katie Weldon Series #1) Robin Jones Gunn (Apr 1, 2008)

Velvet Elvis: Repainting the Christian Faith Rob Bell (Jul 1, 2006)

Icy Heat: A Heat series story by Leigh Wyndfield

John Newton: From Disgrace to Amazing Grace by Jonathan Aitken (Jun 7, 2007)

His Lady Mistress
Slow Hands (Harlequin Blaze)