Macmillan CEO Explains Amazon Disagreement

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Publishers LunchNote: This is an excerpt of a message that ran as a paid advertisement in a special Saturday edition of Publishers Lunch.

To: All Macmillan authors/illustrators and the literary agent community

From: John Sargent

This past Thursday I met with Amazon in Seattle. I gave them our proposal for new terms of sale for e books under the agency model which will become effective in early March. In addition, I told them they could stay with their old terms of sale, but that this would involve extensive and deep windowing of titles. By the time I arrived back in New York late yesterday afternoon they informed me that they were taking all our books off the Kindle site, and off Amazon. The books will continue to be available on Amazon.com through third parties.

I regret that we have reached this impasse. Amazon has been a valuable customer for a long time, and it is my great hope that they will continue to be in the very near future. They have been a great innovator in our industry, and I suspect they will continue to be for decades to come.

It is those decades that concern me now, as I am sure they concern you. In the ink-on-paper world we sell books to retailers far and wide on a business model that provides a level playing field, and allows all retailers the possibility of selling books profitably. Looking to the future and to a growing digital business, we need to establish the same sort of business model, one that encourages new devices and new stores. One that encourages healthy competition. One that is stable and rational. It also needs to insure that intellectual property can be widely available digitally at a price that is both fair to the consumer and allows those who create it and publish it to be fairly compensated.

Read the rest of the letter at Publishers Lunch.

About Guy LeCharles Gonzalez

Guy LeCharles Gonzalez is an old and new media pragmatist, social media realist, and marketing strategist. He is the former Director of Programming & Business Development for Digital Book World, a published poet, writer, and active blogger since 2003. He views publishing as a community service, and is optimistic about its future.

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