Saturday, April 3, 2010

Amazon strikes again. What's an indie to do?

Just the Macmillian-Amazon standoff cools down, Amazon picks yet another fight. Add threatening independent publishers to the growing list of loss-leader strategies, intentional Kindle incompatibility and removal of buy buttons. Amazon is on a role.

With Apple courting indie publishers as they prepare to launch the iPad and iBookstore, Amazon is attempting to curb any power over ebooks that publishers could possibly retain. While it can't pull these antics with the big six, the company thinks it can push the smaller presses around. Amazon is betting that indies, who rely heavily on internet sales, will not be able to survive without Amazon sales. So, the company is threatening to cut them off at the knees if they sign the (more fair and balanced) Apple contract.

But there are signs of hope. Perseus Books has signed on with Apple regardless of Amazon's threats. As the largest independent publisher and distributor of another 330 independent presses, Perseus is setting up a good line of defense. If most small publishers follow suit, Amazon will have to back down lest Apple appear to offer the broader selection. On its own, an indie is a sitting duck, but collectively, Amazon needs them more than they need Amazon.

Amazon's behavior is appalling. Over and over again, the company flexes corporate muscle in order to force the entire book industry to bend to its will. Simply put, the company is trying to determine how strong its monopoly hold is. It is absolutely necessary that publishers deny this corporate bullying now. If Amazon gets away with its behaviors in these early days of digital conversion, the company will be setting the pace and the unsustainably low prices for a long time. Singlehandedly, Amazon could dismantle entirely an all ready fragile industry.

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