Monday, October 19, 2009

At War

Did you know there’s a war going on in the publishing industry? No, it’s not between print book and e-books. (Finally! A bit of news not about e-books or e-readers!)

According to the Wall Street Journal, the war is between Amazon and Wal-Mart. It started last Thursday when Wal-Mart started selling its 10 most anticipated hardcovers for $10 each when pre-ordered online. Amazon promptly matched the offer. So Wal-Mart countered by slicing its price to $9. Amazon followed suit. Then Wal-Mart, determined to have the lowest online price, dropped theirs to $8.99.

David Young, chief executive of Lagardere SCA's Hachette Book Group, said he and other publishers “feared the online pricing could hurt small independent book sellers and big retail chains.”

How could it do that?
If the industry's top books continue to be sold for $9 online in the future, Mr. Young said, it will be increasingly difficult for publishers to launch what he described as "the writers of tomorrow," because the book market may have narrowed significantly.

The veteran publisher said when major retailers are allowed to sell below cost, it represents an aggressive form of price deflation that creates "all sorts of disturbances in the market." He noted that in France it is illegal to sell a book below cost, adding, "I would welcome similar legislation here."
Barnes & Noble and Borders are not matching these online prices. For the most part, the big bookstore chains are not talking.
Most U.S. executives at the fair declined to speak publicly about the price war, for fear of offending either of the retailers.
TweetIt from HubSpot

24 comments:

  1. I'm less worried about Walmart...their selection really isn't there. Now if Amazon decided on an across-the-board price slicing on many different books....ugh.

    Elizabeth
    Mystery Writing is Murder

    ReplyDelete
  2. Thanks for bringing behind the scenes info to us, Helen. This is fascinating. Perhaps we'll go the way of France. I wonder if they are the only country that does this. I'd hate to see smaller bookstores close because of big chain duke-outs.

    ReplyDelete
  3. all has to be good for the customer though right. Gosh the day I find a new book for sale here at those prices I will be tearing down shelves to buy the lot!

    ReplyDelete
  4. It's good for the customer in the short-term; however, as this post points out, it's bad in that it will drive competition and risk-takers out of the market.

    ReplyDelete
  5. Short term good for the consumer, long term bad for the industry. Too many people along the way lose money.

    ReplyDelete
  6. I'm not so sure this is good for the consumer. It would be awful if Wal-Mart and Amazon were our only choices for purchasing books. I don't shop at Wal-Mart and rarely shop at Amazon, so I probably won't be indulging.

    ReplyDelete
  7. With Wal-Mart this is their M.O. across product categories... undercut prices to drive out the little guy--the whole US has small towns with nowhere else to shop because they've been so successful at this. I am actually glad somebody with enough clout is standing up to them so their plot doesn't work IF this can either end the battle early or earn the attention of legislators. I don't see Amazon doing this long term, but I wish them much success in getting Wal-Mart to play fair.

    ReplyDelete
  8. And Amazon lets the major publishers price their ebooks at 0.00, but not independents. The lowest price for them is .99. That's great for readers but not for authors in the long run.

    ReplyDelete
  9. I think France has the right idea! I don't think this competition is good for anyone - even the consumer. Pretty soon readers will only have the choice of buying best sellers and nothing else.

    ReplyDelete
  10. I can see this as a marketing ploy, but somehow can't see it lasting more than the short term (at least I hope not!) Wow, sometimes it seems like one struggle after the other in publishing ...

    ReplyDelete
  11. My question is: what happens to the author's royalties? I understand low prices might induce more sales, but wouldn't it have to be a tidal wave for the unfortunate writer to make any money?

    Elspeth

    ReplyDelete
  12. It's like gasoline wars. It can't last for long. But, in the meantime, what's it doing for writers' royalty checks?

    ReplyDelete
  13. Whenever there is a war with Wal-mart involved, the only real losers are the American people. Can you tell I have issues with Wal-Mart?

    ReplyDelete
  14. It reminds me of some war between behemoths. During their fight, they may hurt other warriors standing around watching and may wipe out the people trying to go about their daily lives. How can the independent stores compete? How can those who self-pub or publish with a small house compete? They can make it if this only lasts a short time, but if it goes on long term, what will the consequences be?

    ReplyDelete
  15. Um, I think there is something even more insidious in the WalMart move. Not only do they drive out the competition, but, in the CD market for instance, they are proud to say that they carry only "clean" music. Following this precedent, WalMart would either not carry gritty (or even blatantly obscene) novels or they would require writers to rewrite offensive passages. I for one, do not want my reading choices cleaned or aborted by WalMart censors. Think of the genres that would disappear—urban landscape stories, GLBT lit ...

    ReplyDelete
  16. My husband saw this in the paper and pointed it out to me. Interesting. It's nice to be able to get some books cheaply, but WalMart's not where I'd go for a serious (or different) book.

    ReplyDelete
  17. Bonita- that is sick if that's what Walmart intends to do. I don't get why publishers can't just not supply to retailiers that sell below listed prices.

    ReplyDelete
  18. Def. something to keep an eye on. I'm with Elspeth and wondering about the royalties.

    ReplyDelete
  19. I shouldn't laugh. It is serious, but I did giggle for a moment, imaginging the two going at it in a price war. *sigh* But I don't want it costing the small mom and pop places to close. Interesting info. Didn't know about this. Thanks for sharing!

    ReplyDelete
  20. It is a convoluted mess, isn't it? As usual, no one particularly cares what the little person (in this case, the writer) wants.

    ReplyDelete
  21. Who buys books from Walmart? I wonder. I've never bought any book from them. I don't know why would Amazon worry at all. Anyway, I don't like the idea of cheapening the books.

    ReplyDelete
  22. I share Bonita's worry. I do still shop at Wal-Mart (occasionally and for only certain things) but I wouldn't buy a magazine or book or CD there because of their policies.

    This book price war strikes me as bad for everybody: bad for writers (who have a hard enough time getting published much less earning money); bad for readers who will have less options; and, ultimately bad for booksellers who will have fewer titles to sell to a limited reader base.

    Something's got to give here!

    ReplyDelete
  23. The article only mentioned Wal-Mart, but I wonder if it does or will include Sam's.

    ReplyDelete
  24. Wow - hot topic here! And judging by all the comments already this early in the morning one that peeps are very interested in. Me too. Well, I guess all is fair in literature and war, eh? One concern I have is for the authors - price wars definitely cut their profits/royalties, but maybe the increased volume will make up for it?

    Marvin D Wilson

    ReplyDelete

Related Posts Plugin for WordPress, Blogger...