Amazon pressuring publishers to increase margins?

Amazon is accused of pressuring publishers and distributors for more favourable sales terms

February 23, 2012
amazon

Retail giant Amazon has been accused by publishers of playing hard ball to extract more favourable sales terms and increase margins on its popular Kindle ebook reader.

The Independent Publishers Group (IPG) have noted that Amazon decided not to renew an agreement to resell electronic titles of IPG clients in an apparent dispute over wholesale discounts on books.

IPG president Mark Suchomel said that, “They [Amazon] wanted better margin and we were telling them what our terms were. So they took the titles off.”

This move means that around 5,000 titles will be removed from the Kindle store although the print titles are still available on Amazon.

Suchomel suggested that this was part of a pressure campaign to win more favourable terms from publishers and distributors.

The two sides had been in discussions for some time according to Suchomel.

“I’m not surprised they pulled when they did. But of course, I’m incredibly disappointed,” he said. “We’re certainly working very well with them on the print side and I would love to sell them the e-title titles. If they want them they’re certainly available.”

Read the full story at: Cnet.

Tags: Amazon, Amazon Kindle, Independent Publishers Group, Mark Suchomel

Free Email Newsletter:
Subscribe

Shutterstock is the image partner of MyBroadband – technology images can be found here

Join the conversation

Connect with MyBB

twitterfacebookandroidappleblackberrynewsletterfeed

Poll

What is your preferred mobile platform?

View Results

Loading ... Loading ...

More News

Sarah Palin gets online TV channel

Sarah Palin

Conservative gadfly Sarah Palin ramped up her Internet profile Monday, 28 July 2014, with an online TV channel

Nothing wrong with ministers having business interests: Muthambi

Faith Muthambi

There is nothing wrong with Cabinet members having business interests as long as there was no conflict of interest, according to Communications Minister Faith Muthambi

Dating site experiments by mismatching couples

Online dating love heart key

OkCupid, a top U.S. matchmaking website, intentionally mismatched users to test its technology

PlayStation to lead Sony revival

PlayStation 4

Sony is hammering out plans to rise from the ashes of nearly $10 billion lost in six years by building a future around its last consumer electronics blockbuster – the PlayStation

Free MyBroadband Newsletter:
Subscribe
X
bool(true)