Hachette announces today it has concluded a new “multi-year” contract with Amazon, ending the standoff that has captured the industry’s attention since May of this year.
The agreement covers print and ebook distribution and will take effect early next year.
Much like Simon & Schuster, which struck a deal with Amazon last month–in a development many saw as increasing the pressure on Hachette to do the same–Hachette’s new agreement allows the publisher to set prices on its ebooks. That means a return–likely to be limited by the specific terms of the deal–to agency pricing.
In its statement today, Hachette appears to have gained that right by compromising, at least to a certain extent, on one of the key sticking points in its standoff with Amazon: lower prices. The new agreement, the statement says, “includes specific financial incentives for Hachette to deliver lower prices,” something the publisher voiced strong objections to earlier this year.
Nevertheless, both sides say they are pleased with the agreement, and Hachette affirms that it “is great news for writers” and readers alike.
Normal business between the publisher and Amazon is said to resume immediately.
HACHETTE BOOK GROUP AND AMAZON REACH NEW EBOOK AND PRINT BOOK AGREEMENT
November 13, 2014 – Hachette Book Group and Amazon (AMZN) today announced that the companies have reached a new, multi-year agreement for ebook and print sales in the US.
Michael Pietsch, Hachette Book Group CEO said, “This is great news for writers. The new agreement will benefit Hachette authors for years to come. It gives Hachette enormous marketing capability with one of our most important bookselling partners.”
“We are pleased with this new agreement as it includes specific financial incentives for Hachette to deliver lower prices, which we believe will be a great win for readers and authors alike,” said David Naggar, Vice President, Kindle.
The new ebook terms will take effect early in 2015. Hachette will have responsibility for setting consumer prices of its ebooks, and will also benefit from better terms when it delivers lower prices for readers. Amazon and Hachette will immediately resume normal trading, and Hachette books will be prominently featured in promotions.
About Hachette Book Group:
Hachette Book Group is a leading trade publisher based in New York and a division of Hachette Livre, the third-largest trade and educational publisher in the world. HBG publishes under the divisions of Little, Brown and Company, Little Brown Books for Young Readers, Grand Central Publishing, Orbit, Hachette Books, Hachette Nashville, and Hachette Audio.
Amazon.com opened on the World Wide Web in July 1995. The company is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Fire phone, Fire tablets, and Fire TV are some of the products and services pioneered by Amazon.