Alternate views of the evil empire

Here is another take on the Amazon / Hachette controversy by Barry Eisler, a former CIA operative and best-selling author of thrillers. Eisler made headlines in 2011 when he turned his back on traditional publishing (which he calls “legacy publishing”) to publish his work independently on Amazon.

In this June 4 article in The Guardian, Eisler ticks off these pluses for Amazon: it “singlehandedly created a market for digital books, [is] now the greatest source of the legacy publishing industry’s profitability (though of course legacy publishers are sharing little of that newfound wealth with their authors)…built the world’s first viable mass-market self-publishing platform, a platform that has enabled thousands of new authors to make a living from their writing for the first time in their lives. And [it] pays self-published authors something like five times as much in digital royalties as legacy publishers do.”

Eisler makes some interesting arguments while waving a red flag (Amazon-hating authors are the literary “one-percent”). I recommend the article to anyone interested in this current publishing brouhaha. My biggest takeaway was Eisler’s simple observation, in an otherwise complex debate, that individual attitudes are probably based more on personal interest than selfless concern for the future of literature. To blame Jeff Bezos for the loss of bookstores, he says, is like buggy makers blaming Henry Ford for the development of internal combustion. Though some of his analogies may be questionable, they point toward two facts that are not: (1) new technologies never go back into the box, and (2) their ramifications are never known at the outset.

I was halfway through the paragraphs above when the postman brought the June 16 issue of Time, with an essay on the back page by Joel Stein, Hachette author of Man Made: A Stupid Quest for Masculinity.

Stein ventured, “with trepidation,” to Amazon “to see what barbarism it had committed on my book’s page – changing my author photo go one of my high school mullet shots, perhaps, or allowing yet more people to start their one-star reviews with ‘No, I haven’t read this book.'”

When he found nothing amiss, Stein sadly reflected that Amazon, with its cutting edge algorithms, had to know how much it would hurt his ego and confidence to be left out of the feud. “I have no idea who will publish my next book,” he says, “though I do know they’ll be sorry they did.”

Diversity and variety are central to the richness of life. I’m old enough to remember and miss various mom and pop stores of all kinds, not just bookstores. A local nursery used to employ master gardeners, who could look at a sick leaf and tell you exactly what to do. Through no fault of their own, the people who work in the Lowe’s garden section can only tell you, “Fertilizers are down aisle one.” As a kid, I learned to make flying airplanes out of balsa wood and tissue paper at a local hobby shop; it was a far more interesting place than any Toys ‘R Us.

Right now, perhaps all we can do in the publishing battle is watch and wait, and opt for diversity and richness in whatever way we can.

To the barricades! No, the other barricades.

Printing, ca. 1568.  Public domain.

Printing, ca. 1568. Public domain.

“Right now, bookstores, libraries, authors, and books themselves are caught in the cross fire of an economic war. If this is the new American way, then maybe it has to be changed — by law, if necessary — immediately, if not sooner.” – James Patterson

I haven’t blogged about ebooks and independent publishing lately. Over the last few years, it’s become clear they are here to stay. Success breeds acceptance, and the “vanity press” stigma is gone. In olden days (ca. 2011), I found a kind of “blows against the empire” satisfaction in promoting ebooks, writing reviews, and encouraging Indie authors. The evil empire was big publishing. This was the time of the little guy.

I still like Indie authors, though the “righteous cause” fantasy is gone. Now suddenly, at least to a casual observer like me, the situation appears reversed, with Amazon in the role of bully-boy, and those same publishers (perhaps) fighting for their existence, and with them (maybe) hangs the fate of a lot of remaining brick and mortar stores.

I first learned of the Amazon-Hachette duel from Michael Koryta, a favorite action-adventure writer I follow on Facebook. On May 19, Koryta reported serious problems pre-ordering his new book, due out June 3, from Amazon. He said the situation goes far beyond the interests of one author, and provided some of the links posted below.

On May 29, USA Today quoted James Patterson as saying “the future of our literature is in danger.” Patterson says that “Amazon wants to control book buying, book selling and even book publishing,” and laments that federal anti-trust laws no longer have teeth.

Here are several editorials on the situation:

Amazon vs. Hachette: When Does Discouragement Become Misrepresentation? From the NY Times Blog

Amazon said to play hardball in book contract talks with publishing house Hachette The Washington Post

AAR Calls Out Amazon in Hachette Dispute, From a statement sent by Association of Authors Representatives to Amazon.

And if I was only going to read one account of this dispute, I’d chose this one by Mark Coker, founder of Smashwords and early champion of ebooks, who believes in the vitality of a diverse writing and publishing world: Amazon’s Hachette Dispute Foreshadows What’s Next for Indie Authors

I’ve heard Coker speak on several occasions, and he’s a keen observer of a complicated landscape and future. His predictions on publishing tend to be right. In this post, he explains that the conflict centers on “agency pricing,” and who gets what profit margin for ebooks. Amazon is demanding a greater share. Here is what is at stake, says Coker:

“Books represent only one of hundreds of layers of icing on the cake of Amazon. Amazon can lose money on books while still operating a profitable business. Pure-play book retailers – Kobo and Barnes & Noble for example, must earn money from book sales. Unlike Amazon, they don’t have the financial resources to sell books at a loss forever…If Amazon can abolish agency pricing it will have the power to put its largest pure-play book retailing competitors out of business. This will make the publishers even more dependent upon Amazon, which further weakens their power.”

That’s the bad news. The really bad news, according to Coker, is that next they’ll come after Indie authors, just as they have in their audio book division, Audible. Gone are the 70% margins for authors that the agency model protects. Instead, exclusive Audible authors get 40% while the non-exclusive rate is 25%.

Coker winds up with with advice for independent authors, who, he says, are “the future of publishing.” It’s well worth reading the details in his article, but here are his main suggestions:

  1. Choose your partners carefully.
  2. Favor retail partners that support the agency model.
  3. Avoid exclusivity.
  4. Support a vibrant ecosystem of multiple competing retailers.

Remember the vibrant ecosystem of multiple competing book retailers? Though it is on the ropes, it’s not yet extinct. That’s worth thinking about and will be the subject of my next post.