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Author Charles Stross: Is Amazon a Malignant Monopoly, Or Just Plain Evil?

An anonymous reader writes "Sci-fi author Charles Stross has a post providing insight into Amazon's recent bullying tactics against a major book publishing group. He puts the fight into perspective for the two most important parts of the book market: author and reader. He says: 'Amazon's strategy (as I noted in 2012) is to squat on the distribution channel, artificially subsidize the price of ebooks ("dumping" or predatory pricing) to get consumers hooked, rely on DRM on the walled garden of the Kindle store to lock consumers onto their platform, and then to use their monopsony buying power to grab the publishers' share of the profits. If you're a consumer, in the short term this is good news: it means you get cheap books. But if you're a reader, you probably like to read new books. By driving down the unit revenue, Amazon makes it really hard for publishers—who are a proxy for authors—to turn a profit. Eventually they go out of business, leaving just Amazon as a monopoly distribution channel retailing the output of an atomized cloud of highly vulnerable self-employed piece-workers like myself. At which point the screws can be tightened indefinitely. And after a while, there will be no more Charlie Stross novels because I will be unable to earn a living and will have to go find a paying job. TL:DR; Amazon's strategy against Hachette is that of a bullying combine the size of WalMart leaning on a much smaller supplier. And the smaller supplier in turn relies on really small suppliers like me. It's anti-author, and in the long term it will deprive you of the books you want to read.'"

14 of 405 comments (clear)

  1. Alternative Summary by ustolemyname · · Score: 4, Insightful

    The author's intentions could be summarized as, "Does this false dichotomy make me look smart?"

  2. Re:Pretty stupid reasoning by jonsmirl · · Score: 4, Insightful

    I have to agree with this, the need for a publisher is disappearing just like the need for a recording label. Stross should self publish and then cut a direct deal with Amazon. He'd probably end up with more money that way.

    Since he's a well know author, maybe try putting his self-published books up on Indiegogo first. He might net enough off from doing that for each book that the later revenue from Amazon is just gravy.

  3. Publishers are Dinosaurs. by brunes69 · · Score: 4, Insightful

    Publishers are not "proxys for authors". They are another obsolete industry group fighting the inevitable for their survival, no different than the RIAA.

    Assume there is a world where I as an author can contract with a third party for proofreading and editing at a fixed cost, and then "self publish" to Amazon and other eBook providers, without a man in the middle publisher eating up my profits, I can sell the books far cheaper and interact directly with my audience. Many authors are flocking to self-publish nowadays and the number is just going to keep growing.

    1. Re:Publishers are Dinosaurs. by Crispy+Critters · · Score: 5, Insightful

      Many authors would rather write than worry about finding and paying for editing, proof reading, cover art, advertising, promotional travel, etc. They are capable of it, but would rather spend their time doing what they do best, which is write. Also, they would rather work under contract with some guaranteed income rather than shoulder all the risk themselves.

  4. Amazon does not rely on DRM by 0123456 · · Score: 4, Insightful

    Publishers demanded that Amazon use DRM... and now whine that readers are locked in to Kindle because that DRM prevents them from moving those books to a different ebook reader.

    Any publisher who wants to can upload DRM-free ebooks to Amazon.

    1. Re:Amazon does not rely on DRM by 0123456 · · Score: 4, Insightful

      And yet somehow even books from Baen and Tor (who don't DRM their books) end up on Amazon indistinguishable from those from other publishers.

      Maybe they should stop enabling DRM on their Kindle books, then.

      When you upload a Kindle book to Amazon, there's a checkbox to enable DRM. Just don't check it. Job done.

  5. Re:Do we really need new books? by dreamchaser · · Score: 5, Insightful

    I can't believe this was modded up. Just because there are plenty of good old titles doesn't mean one shouldn't read new titles. Following your logic nobody should bother writing at all. Let's just give it all up.

    Talk about drivel. Your post has it in spades.

  6. Re:Read his books by 0123456 · · Score: 4, Insightful

    Protip: There is no good guy here.

    Yes. Ideally writers would eliminate publishers and Amazon, and sell direct to their readers. But that's hard to do when most readers want a central location where they can find new books to buy.

    The funny part is that the publishers could have created that location with their own online store years ago, but, instead, they let Amazon do it.

  7. Re:Do we really need new books? by Frosty+Piss · · Score: 5, Insightful

    CR, you've turned this into a "paper vs ebook" argument, but I think you miss Strosss point: Amazon's monopolistic stranglehold on distribution forces the price down which puts publishers out of business. This results in Amazon being the dominant publisher, working directly with authors. But it also allows Amazon to dictate to authors what they will pay, just as they did with the traditional publishers. This is not "free market", it is a monopoly no less than Microsoft was, and it's not good for consumer choice.

    Second point: It may not seem like it here at Slashdot, but the desire to have and to hold and to read "real" books is not dead. Certain segments of the current generation might feel that way, but I don't see it. The bookstores in my town are always busy, the library in my town is always busy, and many of the books (of the so-called "dead tree" variety) are often on hold by several library patrons before I get to check them out. I suppose you're going to say "What a quaint idea! To check out a book!", but many people still enjoy the experience of turning pages...

    I know I'm probably the minority, but when I buy a technical book in electronic form, I immediately print it out and put it in a three-ring binder, much easier to locate what I'm interested and flip back and forth between sections... And here's the high-tech sacrilege: I print them out single-sided with wide margins. I use the blank side for notes...

    Now get off my lawn.

    --
    If you want news from today, you have to come back tomorrow.
  8. Re:Pretty stupid reasoning by Crispy+Critters · · Score: 4, Insightful
    People who are not involved in the publishing industry think it would be great for authors to self publish. Interestingly, authors seem to think almost uniformly that it is a terrible idea. The authors, who have a very good idea just what publishers can add to the book, mostly really really like what publishers do for them.

    The authors also don't think that they will make more money by self publishing either, because they know how much less they will be writing because of the time spent on other tasks currently handled by the publisher.

  9. Re:Do we really need new books? by CRCulver · · Score: 4, Insightful

    When writing is done to produce a product for mass consumption, the quality of literature goes down.

    While some fine modernist literature has come from people who were not targeting a mass audience and were able to depend on patronage or another line of work while writing, the English canon clearly offers abundant counter-evidence for the idea that mass-market writing results in lower quality. Shakespeare was knocking out plays at a fairly rapid pace for the plebian theatre-goers at the Globe, while Dickens was writing his novels in installments published in the ordinary magazines of his day. Mark Twain wrote for a general American public and enjoyed making a mint off it.

  10. Re:Analogy cut short? by vux984 · · Score: 4, Insightful

    Is this not just precise how capitalism is supposed to work?

    Actually no. Not even close. This is how its supposed to work: the Charlie Strosses would just sell through different channels. The customers would buy through the other channels. Amazon would miss the income, and would pay what it took to get the novels (and customers) back.

    But that requires a competitive marketplace with multiple competing channels. If amazon owns enough of the market, then the Charlie Strosses can't stay solvent just selling through other channels. This gives amazon more power to DICTATE pricing than a functioning market would normally allow.

  11. Re:Read his books by dgatwood · · Score: 4, Insightful

    A good editor is like having a glass of a fine wine, evening out the rough edges. A bad editor is like drinking too much and having a big hangover the next day.

    The key to good editing is pointing out errors while retaining the author's voice. Unfortunately, lots of editors go way too far and think that they need to rewrite everything the way he or she would have written it. This tends to result in misery all around.

    --

    Check out my sci-fi/humor trilogy at PatriotsBooks.

  12. Re:Read his books by Anonymous Coward · · Score: 4, Insightful

    That's funny, I know a number of editors. They all think authors actually aren't well-placed to judge their own books, and tell me a good edit improves them immensely.

    And frankly, I agree.