Simon & Schuster Strikes Amazon Deal Reviving Agency Ebook Pricing

This post has been updated with new information.

Simon & Schuster has reached a multi-year distribution agreement with Amazon, according to reports today by the Wall Street Journal and Business Insider.

Neither Amazon nor Simon & Schuster have publicly announced the deal, but Publishers Lunch reports that it marks a return to the agency pricing model, allowing the publisher to set its own ebook prices.

Related: Kindle Head Russ Grandinetti Joins Digital Book World 2015 to Discuss Amazon and Ebook Retail’s Present and Future

Under the terms, which according to Publishers Lunch involve Simon & Schuster authors “retaining the same share of income — 25% of receipts that are 70% of the consumer selling price — that they have had since the publisher first moved to agency in 2010,” Amazon’s prerogative to discount the publisher’s ebooks is sharply limited.

Update: Simon & Schuster confirms the agreement, writing in a letter to authors and agents that “it is economically advantageous for both Simon & Schuster and its authors and maintains the author’s share of income generated from eBook sales.”

The deal is said to cover both Simon & Schuster’s print and ebooks and takes effect January 1, 2015. Both sides are reportedly pleased with the outcome.

Meanwhile, Hachette remains locked in a standoff with Amazon over its own distribution contract, and it’s uncertain whether or how the Simon & Schuster deal might shift the dynamic of the ongoing negotiations.

We’ll update this post as more information becomes available.

2 thoughts on “Simon & Schuster Strikes Amazon Deal Reviving Agency Ebook Pricing

  1. Smart Debut Author

    And to let Simon & Schuster know they mean business, Authors Unhinged may even send that letter by…

    FED EX!

    Reply

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