The problem with any open confrontation is that often things
that were really said in public have a habit of rising to the surface and
becoming public. Public Relations people then try to put them back into the box,
or rationalise the issues, but often the damage is done, or the public’s
perception has changed. Propaganda is a powerful tool when communicated
effectively.
Today’s standoff between Amazon and Hachette is becoming
increasingly visible to the public. Some would say that the majority of book
buyers are more concerned about getting the right price and service for
themselves than they are about the trading terms between publishers and
retailers. This makes sense and for many it is as if this battle is taking
place on another planet. But then we introduce the emotive strings and issues
that attempt to sway opinion. Not many care about the plight of the main protagonists,
but introduce the authors and that changes things a bit. One side infers that authors
are being exploited, and the other also says that they are being exploited or
harmed by the action. Some would suggest that the author is are mere pawns in
this battle.
We now have Amazon making a public statement ‘Update re:Amazon/Hachette Business Interruption’.
The statement is logical from Amazon’s perspective and makes
arguments for lower ebook prices, which reflect the reduced usage rights, plant
and distribution costs. They suggest a price point of 9.99, but also recognise
some books will cost more. They put forward their revenue model split between
themselves, publishers and authors and then say we’ll give you 70% and you guys
can sort it out the division between yourselves. They argue that lower prices
increase volume sales which in turn create greater revenues for all.
What Amazon have subtly done is drop a PR bomb into the
publisher lap. They have questioned the royalty paid to authors, knowing that
their suggestion is higher than what publishers gives. They have started to
make the public more aware of the differences between the usage rights costs and
pricing of ebooks, and in doing so promote themselves as consumer champions. This
interestingly moves the debate into the public arena and starts to set the
public argument and seize the public initiative.
Can the publisher respond effectively and seize back the
propaganda war, or will they aim to muddy the waters and strike back with a fresh
angle of attack?
What we are seeing can only benefit two people in the end,
the author who will demand more and whose case is being strengthened by the day,
and the public who will get cheaper books as the ebook RRP comes under
pressure. Will it benefit Amazon over others, or will others benefit from the
stance taken by Amazon? Will others step in and try to broker a deal or will Amazon
simply and suddenly capitulate knowing that they have already scored their points
and leave the fight for another day?
