Book publishers and authors are abuzz with the news that representatives of online retailer Amazon.com
have been approaching high-volume publishers utilizing the print-on-demand services of Lightning Source, Inc. (LSI) to get them to set up their titles for printing by Amazon.com's own printing company, BookSurge, or have the "Buy" buttons removed from their books' listings at Amazon.
PublishAmerica 's March 27, 2008 press release
confirms that Amazon.com gave the company an "ultimatum, demanding the
right to print" its almost 30,000 titles or else Amazon.com "will
retaliate by disabling the 'Buy' button on all of its PublishAmerica
listings."
In other words: Let us print your books --and collect more money from
you -- or we won't sell your books any more.
The "Buy" buttons to many if not all PublishAmerica books listed on Amazon.com disappeared late this week.
PublishAmerica says it "will not comply with Amazon's ultimatum, and
will not allow that company to dictate who will print PublishAmerica's
books, and at what conditions."
Angela Hoy of Booklocker broke the Amazon.com story publicly yesterday in her Writers Weekly e-newsletter. Click here to read that article and find links to further reportage, including articles in the Wall Street Journal, Washington Post and Publisher's Weekly.
Some in the industry are
referring to it as an "offer you can't refuse." Terms like "strongarm
tactics" and "bullying" are also being used -- and, admittedly, come to my mind.
The threat carries punch especially for small publishers and subsidy publishers (the latter including companies like iUniverse/Authorhouse , Lulu, and Booklocker)
because Amazon.com is the biggest online book retailer, and it's
difficult for small publishers and subsidy publishers to get their
books into brick-and-mortar bookstores.
Print-on-demand
(and short-run digital printing) is a relatively new development in the
publishing industry, but it has boomed in the past few years. Small
publishers often use print-on-demand and short-run digital printing by
companies such as LSI to cut down on the costs of printing and storing
inventory. Instead of printing thousands of books at a time (for
thousands of dollars) and paying to store them until sold -- and
destroying or remaindering them if not sold -- print-on-demand
technology allows printing of only one copy of a book at time, if
desired, which means a book need not be printed until it is
sold/ordered.
More than 50 percent of all academic presses utilize print-on-demand printing, according to the Wall Street Journal. Even the big commercial publishing houses use print-on-demand technology to print "backlist" titles.
While several printing companies offer print-on-demand services, LSI
is the largest. It's attractive to publishers largely because of its
affiliation with Ingram, the large book wholesaler.
It's difficult for small publishers (and subsidy publishers, no
matter what their size) to get their books carried by Ingram or other
wholesalers or distributors. But most bookstores want to buy books
wholesale through Ingram or another wholesaler or distributor, not
directly from publishers. They want to place one order for a shipment
of books, not hundreds of orders from hundreds of different publishers.
Utilizing LSI for printing allows small publishers (as well as
subsidy publishers and academic presses) to get their books listed for
sale through Ingram, which makes the books available for sale through
online retailers as well as (usually through special-order)
brick-and-mortar stores. Even the "big boy" traditional commercial
publishers often use LSI for "backlist," slower selling books to keep
them in print without having to maintain piles of such books in
inventory.
Pearlsong Press, the
publishing company I founded in 2003, uses LSI as our printer. We
haven't been approached by Amazon.com (yet?) about switching to
BookSurge because we're small potatoes, with 13 titles in print and 2
more being published in April and May. (But we're very tasty
small potatoes, I might add.:-) Subsidy publishers like
iUniverse/Authorhouse and Lulu have thousands of titles in print.
Booklocker alone has 1,500.
What does this mean, exactly, for publishers? And authors? And readers?
There are costs in time and money to set up books for printing at
BookSurge as well as at LSI. BookSurge uses a different file format
than LSI, so existing book files would have to be reformatted to their
specifications. Book interiors and book covers are separate files, so
each title would have 2 files needing reformatting. PublishAmerica, for
instance, would have to reformat almost 60,000 files to set up all its
titles for printing by BookSurge.
Such reformatting would take time, attention and money away from
preparing new books for publication. That will affect authors as well
as readers -- fewer books accepted for publication, fewer new books
being published. Not to mention less income for publishers (and smaller
royalties for authors) as sales decline during the interim in which
publishing energy is directed toward meeting BookSurge's specs and
Amazon.com's demands.
New titles will incur a setup fee. BookSurge also demands a higher
discount from publishers than LSI does, so publishers will make less
money from each book printed and sold through
BookSurge/Amazon.com...unless they raise the price of said books.
I don't know yet how this will affect Pearlsong Press or other small
publishers who use LSI for book printing but aren't subsidy publishers.
(Subsidy publishers -- aka "vanity presses" -- are publishers that
charge authors to publish their books. Traditional publishers, whether
they use print-on-demand technology or not, don't charge authors for
publication. It should be noted that PublishAmerica considers itself a
traditional publisher, but most in the industry consider it a type of
subsidy press.)
I do know, though, that I don't like the way Amazon.com is
reportedly doing business. (Even if its representative is quoted in the
WSJ as claiming they're just trying to "better serve" their "customers and authors.")
This small potato isn't interested in being masticated by a
corporate behemoth more interested in making money than ensuring the
viability of independent presses.
And I personally am planning to cease making any purchases from Amazon.com until -- or unless -- the company quits its bullying.
In the meantime, Pearlsong Press books ARE still available for sale at Amazon.com....but also at BarnesandNoble.com (which also offers free shipping options, by the way), and the independent bookseller Powells.com,
as well as other retailers. And you can also, of course, purchase our
books directly from us -- many of them autographed -- via our website (www.pearlsong.com).