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Amazon/TBD deal could lead to 'pallid frontlist offering'
20.07.11 | Lisa Campbell
If Amazon merges with The Book Depository then readers could be starved of variety and left with a "pallid frontlist offering" over time, according to the Publishers Association and the Independent Publishers Guild.
As the deadline for submissions to the Office of Fair Trading investigating the merger passed on Monday (18th July), details of the joint response from the PA and the IPG have emerged.
In the first time the two bodies have united to become one lobbying force, they argued that Amazon’s acquisition of TBD could lead to British readers being offered a greatly reduced range and variety of literature to choose from, as Amazon grows more dominant and bricks and mortar booksellers reduce in number. The response states: "Whether one considers the market of all book retail, or internet only, or e-book, Amazon would appear to be in exceptionally strong position in each, and that in each there is the strong likelihood of this positioning strengthening yet further.
"The upshot of this would be a diminution of the offering to consumers, with fewer retail outlets, as well as a narrower selection of books to choose from. Over time, the British book consumer will be left facing a pallid 'frontlist' offering, replete with 'me too' offerings, sticking to tried and test formulae, with a diminished range of voices and perspectives."
Over 100 members of the IPG responded to a survey asking for their thoughts about the merger, with many worrying about the potential impact of losing their trading relationship with TBD altogether.
Richard Mollet, chief executive of the PA, said: "This proposed merger is of great concern to us and our members. We feel that the merger would reduce competition, plurality and diversity in the book retail market, and that it raises questions that have long been asked about Amazon’s strikingly dominant position."
Bridget Shine, executive director at IPG, suggested the merger could lead to consumers paying higher prices. She said: "Reducing market channels for publishers reduces competition. This anticipated acquisition will result in less choice and ultimately, higher prices for consumers."
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Has Abebooks been merged by Amazon into the main site ? - *No*. In fact most people still do not understand that Amazon owns Abebooks.
What is all this alarmist crap coming from trade bodies that just do not understand how Amazon operates.
If Amazon have become "strikingly dominant" (Richard Mollet) then the publishers themselves hold a high degree of responsibility
Once again, Clive is absolutely right. This is of the publishers' own making, and now the die is almost cast. There's only one way this can be addressed, but not a single large publisher has the guts to do what's needed. Copyright is king, remember.....
Clive has been sending out invitations to this party for years, now that everyone suddenly wants to come along to share the jelly he seems very cross. Having said that, seems to me the Book Depository deal is not the main issue here, and it is to be hoped the OFT doesn't get sidestracked by the brimstone and takes a cool-headed approach to the wider issue of internet retailing and how it may impact the diversity of bookselling online and offline. If the objections to the BD deal facilitate that then all well and good.
"The upshot of this would be a diminution of the offering to consumers, with fewer retail outlets, as well as a narrower selection of books to choose from. Over time, the British book consumer will be left facing a pallid 'front list' offering, replete with 'me too' offerings, sticking to tried and test formulae, with a diminished range of voices and perspectives."
Sorry, is this a description of this year's "Christmas" offerings, a judgement on the Chain Bookseller of the Year's (Sainsbury) - as voted for by publisher among others - offerings or an acknowledgement that supine publishers have presided over the destruction of a once fine industry?
None of these objections makes sense to me. Amazon, and online retail in general, has always been good for long-tail publishing. It's the B&M booksellers who only have room to stock "a pallid 'front list' offering, replete with 'me too' offerings". I see absolutely no reason why the acquisition of one online retailer by another would change that situation in any way. Amazon's acquisition of TBD isn't going to reduce either store's stock.
As for the suggestion that "Reducing market channels for publishers reduces competition. This anticipated acquisition will result in less choice and ultimately, higher prices for consumers." - isn't that what publishers have been calling for for years? If Amazon does raise its prices and - provided with a lack of incentive to race to the bottom - start to offer publishers less deep discounts, that can only be good for the trade, particularly the independents. That won't happen - the prices will stay low - but the objection doesn't make sense to me on any level.
Surely the only objection to this merger is the competition issue? And since the Book Depository is neither the only retailer in Britain, nor the only etailer in Britain, even that doesn't hold water.
Couldn't agree more with Tim's comment above. The statement from the joint bodies is glaringly ill-informed and really quite ridiculous. With a few exceptions where they score well on pre-orders, Amazon's share of front-list sales is actually quite small. It is the online behemoth's share of backlist sales that is strong. So the idea that Amazon/TBD merger will result in readers being "starved of variety" is utter rubbish.
Dead right Tim.
If anyone has protected long tail publishing it's Amazon. It's become far to expensive for traditional B&M retailers to have the space and stock to deal with the long tail.
The Publishers and now the Bookseller are spinning in their own PR. If anyone has reduced the quality of the blacklist it's the members of the PA who have all invested millions in buying front list titles whilst leaving niche Authors to try and find their way with the smaller IPG members.
Let's face it any objection from the Publishers always looks weak as it is obviously based on their own self interests and has little to do with the customer. Can anyone remember when the PA has ever been successful at either the OFT or CC - the regulators see right through them.
The launch of Marketplace in 2001 (April 2002 in UK) was the rocket that launched Amazon into dominance.
Book listings were the gatekeeper to the Amazon website ; however Amazon ensured that they were responsible for minimal stocking liabilities via such as the Advantage programme. At the same time Amazon further squeezed the large publishers for preferrential terms.
Amazon quickly realised that Marketplace was akin to 'slots'(fruit machines) for revenue ; assured percentage commission plus the monthly listing fee from millions of third party sellers.
Nowadays, I believe that Amazon will happily subsidise any losses on their own direct sales of new books from their massive revenue from third party sellers such as TBD. If large publishers are willing and weak then Amazon will happily turn the screw on terms.
I could give numerous instances where Amazon has deliberately predatory priced recently published titles without the assistance of additional discount from publishers. Refuse to supply Amazon and they will source from the wholesale network (if the publishers do not supply the general wholesale network then they would lose sales to many smaller booksellers).
I believe that the objections to the takeover of TBD by Amazon are on very weak grounds : however, I desperately hope that they are reined back. Without the power of strong legislation there will be no control over Amazon ; the various trade bodies should have been petitioning political movers and shakers at least seven or eight years ago.
Agree with the above, the publishers are wasting their time. When will they realize that they control their own content and it is up to them to ensure that all channels survive if that is what they want. Its easy to do, you just have to be brave!
There is nothing wrong with the deal, it makes complete commercial sense all round and will not lessen the offer to the consumer. However, publishers should not sit and think that the OFT or the CC can help them. Its blindingly simple - without the recognition of the fact that B&M retailers cannot compete (on price) then the consumer will do the talking. Yes publishers, you control that price!
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"Reader Survey click here....win a £50 Amazon voucher"
So topical, typical and tasteless in the light of recent events.
It's a Guardian Reader Survey actually Clive, I'm not sure why that isn't clear in the link. But it's not deliberately meant to be tasteless.
You really do have to despair at some of the comments in this article.
Why would Amazon take over Book Dep just to make them a mini - Amazon? Surely the whole idea behind the purchase is that BD offer something which Amazon would struggle to replicate - you don't spend millions on a company just to make it into something you could set up yourself and do away with all the unique selling points in the process.
For "palid front line offerings", please visit your local Sainbury's aka The Bookseller's Bookselling Company of the year. My bedside table has a wider range of titles than my local Sainbury's. Smacks of hypocracy in the extreme,
Fair enough that many aren't comfortable with Amazon buying BD, but at least put some thought into the reasoning behind the objections.
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