Posts Tagged piracy

New York Times covers reader reactions to Amazon price increase

The New York Times has an article covering the implications of the impending agency pricing model for book sales. It mentions the one-star ratings that have shown up when e-book editions have been delayed or perceived as too expensive, and warns that publishers may be in for more than they bargain for with the increase in price.

Many of the arguments that we have covered in detail over the last couple of weeks make their appearance here: the cost of printing and shipping a paper book versus price of e-book, the sense of “entitlement” displayed by consumers, and the risk of increased price leading to increased piracy.

There are a few notes that might come off as ironic to those who have been following along. In particular:

“There are people who don’t always understand what goes into an author writing and an editor editing and a publishing house with hundreds of men and women working on these books,” said Mark Gompertz, executive vice president of digital publishing at Simon & Schuster. “If you want something that has no quality to it, fine, but we’re out to bring out things of quality, regardless of what type of book it is.”

As many mistakes as readers have been finding in Kindle editions (springing, apparently, from automated conversion without subsequent proofreading), this declaration is laughable. If they want to increase their prices, they had darned sure better start paying attention to the sort of “quality” they are putting out.

The publishers seem to be hoping that the Americans who have not bought Kindles or Nooks so far, and are not used to the $9.99 price for best sellers, will find $12.99 to $14.99 a reasonable price to pay for the electronic version of a more expensive hardcover book.

A number of consumers interviewed for the article had other opinions, however. Author Douglas Preston expressed astonishment at reader “entitlement,” calling it “the Wal-Mart mentality”.

Amazon commenters attacked Mr. Preston after his publisher delayed the e-book version of his novel [Impact] by four months to protect hardcover sales. Mr. Preston said he was not sure whether the protests were denting his sales. But, he said, “It gives me pause when I get 50 e-mails saying ‘I’m never buying one of your books ever again. I’m moving on, you greedy, greedy author.’”

This is the sort of experience a number of authors are having lately. Certainly judging from a recent post on Whatever, John Scalzi has been getting a number of that kind of e-mail in the wake of his series of posts on the Amazon/Macmillan affair, but he doesn’t let it bother him.

If the article has a flaw, it is that it simplifies e-book readers’ complaints to the price increase and release windowing, which does make readers seem a little “entitled.” On the other hand, as Ficbot and I have made clear, some of we early adopters do have a few more issues than just those. (But then again, most of the people complaining will probably be relatively new Kindle users who may well have a simpler outlook.)

In any event, the article also quotes publishers saying they can take advantage of the opportunity to experiment with different prices and find out what the best prices are for their content. And if the publishers’ track record on pricing so far has led to the sort of frustration Ficbot and I expressed, we can at least be hopeful that this is a chance for them to make a fresh start.

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Susan Piver: Publishing industry repeating mistakes of music industry

spiver[1] Found via TechDirt: Ex-music-industry-exec Susan Piver, who I covered a few days ago for her comparison of Macmillan’s pricing change to the way the music industry went down the tubes around the turn of the century, has made another post comparing the two industries.

This is actually an article she wrote after being badly shaken by what she saw at 2009’s O’Reilly Tools of Change conference. She reposted it in preparation for 2010’s TOC conference coming up at the end of this month.

Piver sees history repeating itself: publishers, she says, are reacting to e-books and file-sharing in much the same ways as the music industry reacted to digital music ten years earlier.

In particular, she casts blame on the way both industries were or are focusing on finding big sellers (hit records, bestselling books) at the expense of lesser-selling but more diverse talent.

Rather than developing artists, exploiting regional marketplaces, and building financial models that can easily support a mid-range list, both industries focus on entertainment at the expense of art and expression. (Difference between selling entertainment vs art? Entertainment starts with the customer and works back to the product. Art begins with the product and works forward to find/create an audience.)

Piver also remarks on how a number of people at the conference parroted the assumption that peer-to-peer downloading “killed the music business” and might do the same for publishing.

Downloads did not kill the music business. Shortsightedness and turf-protection on the part of music business executives did. Piracy and changing distribution schema will not kill the publishing industry. Shortsighted infrastructure-protection on the part of publishing houses will.

And this put me in mind of something I saw spring up in the wake of the Amazon/Macmillan dispute and John Sargent’s letter to publishing-industry staff. I wrote in my “Appeal for Understanding” of e-book fans upset by the way Sargent referred to Amazon as Macmillan’s “customer” without ever mentioning them.

Piver writes:

At Tools of Change, Sara Lloyd of Pan-MacMillan nailed it when she said, "Publishers understand markets, but not customers." As anyone in the music business could have told you years ago, the customer is now a human being, and publishers–who still see retail as their customers–don’t know how to build products for individuals who might want to discuss, interact with, congregate around, or add their own $0.02 to the content. The customer has stepped out of the bookstore and into the foyer of the publishing houses, they are knocking on the doors of authors, and asking to be addressed as individuals.

This is exactly right, and I am sure Ficbot would agree.

At present (or at least, at the 2009 Tools of Change conference), Piver says, she sees a lot of people in the industry uncertain what direction to take—hoping someone else does something that works so they can copy it. (Perhaps the Macmillan pricing change was such a “something”, though Piver does not say so.)

As I wrote yesterday, media executives such as Elisabeth Murdoch are starting to recognize the importance of social media and interactivity in promoting their products. Perhaps it is time publishers took a page from that book.

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Earth to publishers: Apple tablet or not, consumers will spend only so much on e-books

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Amid all the excited headlines today about the Apple tablet or other technology, one of the more important doesn’t mention the A word at all.

It’s from the New York Observer and reads: After three months, only 35 subscriptions for Newsday’s Web site.

Just in case you haven’t heard, we’re in the worst global recession since the 1930s—something that may yet turn into a Depression. So I would urge publishers to keep down the prices for books on the Apple and not use multimedia as a price-raising gimmick, just when it really would help. Even the tendency of some users to pay for mobile content, but not the usual desktop content, isn’t enough.

Granted, Newsday is a newspaper and it is free to cable subscribers, reducing the market for paid subscriptions; but the same idea applies to books in this frugal era. I myself like the idea—advocated by some smart people in publishing—of e-books typically costing less than $10 and going down from there. Talk about ways to combat piracy and grow the market!

Ideally the machine itself will go for $500 without a subscription, or drop to that level quickly, but this is hope, not prophesy since—as I’m writing this—I don’t know what the price will be.

Meanwhile Engadget has run an image “of what certainly looks like a prototype Apple tablet” bolted down. A genuine photo or a fake? This afternoon—and maybe through leaks before?—we’ll find out.

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