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Agents pick sides on Hachette v Amazon

13.06.08 Benedicte Page

The author and agent community has backed Hachette Livre UK in its terms dispute with Amazon, with leading agents spearheading a backlash against the online retailer.

The dispute has seen Amazon remove its “Buy new” button from key Hachette front and backlist titles, and drop books from promotional positions. In a letter sent to agents and authors last week, Hachette c.e.o. Tim Hely Hutchinson said he would stand firm against conceding additional trading terms, and asked authors for their patience.

He said Amazon’s sanctions were “creating a breach of trust between Amazon and its customers”, and its actions could “prove to be a catalyst for Amazon starting to lose its popularity with the public”. Despite advantageous terms, he said, “Amazon seems each year to go from one publisher to another making increasing demands in order to achieve richer terms at our expense and sometimes at yours.” At its current rate of growth, he predicted that Amazon would become the largest bookseller in Britain in three years.

Curtis Brown m.d. Jonathan Lloyd said: “I think the entire industry of publishers, authors and agents are 100% behind [Hachette]. Someone has to draw a line in the sand. Publishers have given 1% a year away to retailers, so where does it stop? Using authors as a financial football is disgraceful.”

Clare Alexander of Aitken Alexander added: “This is a disturbing glimpse of the iron in Amazon’s soul. I think its ruthlessness in bargaining is extremely disturbing.” Derek Johns of A P Watt said: “I consider [Amazon’s] attitude to terms is predatory and I entirely support Tim.”

The m.d. of a rival publisher said: “Taking the ‘Buy’ button down is the equivalent of going to a bookseller on the high street and saying, ‘Can I buy that book?’, and them saying, ‘No.’ It’s disgraceful.” Another added: “Publishers are thinking, ‘Thank God it’s Tim and not me.’”

Hachette has also received author support. Headline novelist Emma Darwin said on her blog she supported the move, “and hope I shall be unselfish enough to keep doing so even if my own sales are affected. This is about whether Amazon can be allowed to exploit its near-monopoly.”

Lloyd said it was “bloody difficult” for authors affected. “What I’m saying to Hachette is, ‘I understand and support the principle, but with the books that have been delisted on Amazon, you’ve got to sell more to other online retailers.”

An Amazon spokesman said: “[We are] totally committed to offering the broadest selection of titles possible, both through our retail offering and through Amazon Marketplace. Amazon.co.uk is also committed to ensuring we offer our customers the lowest possible prices.”

Retail Benedicte Page Clare Alexander Tim Hely Hutchinson amazon Hachette Livre Home Jonathan Lloyd

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By Clive Keeble

Not sure that (Jonathan) Lloyd understands the situation : Amazon have totally de-stabilised the market for new book sales in this country. It is not just a question of opening another tap to ensure that his author's get their sales. For too long publishers have buried their heads in the sand and given away more and more to Amazon who like certain supermakets wish to ensure that their customers get offered the lowest prices without considering the damage their tactics are causing and that somebody somewhere has to make a profit for business to survive. Printers have been forced into closure in this country as publishers increasingly have tried to save a penny here and a penny here only to give it away to the likes of Amazon so they can boast lowest prices. On a more or less daily basis titles are cover price inflated above original publishers notional rrp on AI's because somebody is demanding extra discount. Book prices in this country, for similar editions, are in many cases near twice the US price. Unless the publishers collectively wake up to the situation then there are only to be left with a few outlets for sales. These words are from my heart. Tim Hely Hutchinson deserves full support from all sectors of the booktrade.

13 Jun 08 07:39

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By June Austin

I agree 100 percent. The reason that cover prices are so high is because no one pays them anymore - publishers know that 50 percent of say £10.99 is a damned site more than 50 percent of £5.99, and so the cover price goes up to make sure they cover their costs. It is time to stand up to these bullies, and only someone of Hatchette's size can do this. I am with them 100 percent and am glad to see that their authors also appear to be so, and think of long term gain rather than pain ! When I said earlier in the week that horses and Amazon had one thing in common (s***) I wasn't joking ....

13 Jun 08 16:17

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By Michael Furey

Amazon is the WalMart of the space - they have been bullying publishers for years and have engendered so much ill will that it is only a matter of time before there will be a revolt to accepting their predatory practices. Book buyers should learn to start buying from the publishers directly, and also from independent book stores if they want to keep the industry alive. Stand strong Hachette! Other publishers will join you eventually.

13 Jun 08 18:41

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By Jay Mandal

I wonder if Amazon would have to revise its strategy if something akin to public lending right was applied to Marketplace. After all, it's unfair that neither the author nor the publisher benefits from the sale of secondhand books.

14 Jun 08 03:37

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By Ron

Poor Tim Hely Hutchison. Maybe he and Jonathan Lloyd will have take human salaries and pensions instead of interstellar ones. It's hard to feel sorry for big publishers, I'm afraid. They gamble on other people's hard work and talent - sometimes they win and sometimes they lose. We work in a market place dearies, not a public service. Amazon have invested hugely-- they have to try to keep their shareholders happy. One has to say that, for the book trade, these Amazon owners have been very honourable shareholders, rather more honourable than some investors in publishing. Weep not for publishers and agents.

14 Jun 08 12:27

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By Clive Keeble

Oh golly gosh, Ron, you are spouting such vitriol agin publishers and agents ; sobeit, however, youse mighty wrong about where Amazon has "invested hugely". Amazon have most certainly not invested hugely in stock, they are a predator and have left others to be their harvest gatherers. There is so much misinformation about Amazon ; oh yes, you will see warehouses and pallets of stock but many publishers are deliberately placed on the long-finger via Marketplace Advantage Programme (Program). Amazon demands either 55% or 60% discount - that way they can discount to ensure lowest price to their customers.....oh wait on, brother, Amazon do not purchase the stock on supply terms, *no* they pay the publishers at the end of the month following that which they have made an end sale. Walk into most independent bookshops and the customer has the benefit of browsing hundreds of thousands of pounds worth of stock : this stock has to be paid for on standard trade supply terms...I have never met a publisher anywhere who is prepared to allow me (or any other indie) to pay them a month in arrears after making an actual sale...you pay as you go, or you don't get stock. Amazon (uk) furthermore heavily relies upon sourcing from Bertrams and Gardners : if a title is not a stock item in the wholesalers, and if the publishers also does not sign up for the Advantage programme then their books are likely to show on AZ with a £1.99 sourcing fee and extended delivery. On Friday I sold a c.£50 illustrated book, £1.99 sourcing fee on Amazon, but a stock item in Keeble - I get 40% discount from the publisher, but Amazon (who invest as little as possible in physical stock) cannot offer a firm supply time..they have no wish to purchase any stock for which they don't have a guaranteed swift sale. Slowly the public are realising that Amazon are a predator set on destroying the traditional bookshops - jeezh, even the current front cover of The New Yorker illustrates "our" plight. Of course, what I have highlighted is not directly related to the current "negotiations" between Hachette and Amazon : however, Amazon are merely a seller, as of yet they are not a recognised wholesaler (and hopefully never likely to be so) and they should therefore be restricted to supply and payment terms in line with those offered to other retailers. Better open up for those Father's Day (casual) customers whose books have not arrived from Amazon in a timely manner.

15 Jun 08 08:45

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By Anon

In this day and age, surely publishers could set up their own online shops and cut out Amazon altogether. They could advertise the web address to buy the books directly from them on the posters and other marketing material they produce for book launches, so directing buyers to their site and also increasing the profile of the publishing house at the same time. They would then be in a position to set realistic prices for books and discounts that would keep both the buying public and publishers and authors happy. There are many other alternatives to Amazon these days too, so perhaps they could still also work with other retailers who have an online presence, such as Waterstones, Foyles, Play etc. Setting up an online shop has become easier and easier over the years and if the publishers could be bothered to invest in this, then perhaps they wouldn't be at the mercy of a giant such as Amazon.

08 Jul 08 11:45

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By James Clark

As an aspiring author, I'm irritated and upset by the obvious implications of these moves by Amazon. I don't have a track record, I've never sold to a magazine and therefore, it is most likely my submission will go into the slush pile. If a publisher is being squeezed by the seller, who can they afford to pay to read submissions? While I may exaggerate, are we looking at the last generation of authors who will pass under an editors eyes before reaching the shelves? Particularly unattractive is the timing with regards to a financial downturn. Just when people are cutting back on luxuries and publishers may begin to feel the pinch, the cash rich seller is leaning on them for another big discount. It seems to be a thoroughly tacky and unpleasant course of action to pursue from almost every angle.

22 Jul 08 10:33

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