B&N and Amazon
B&N sure has a lot of pent up anger against Amazon. Their e-reader “Nook” was overshadowed by Amazon’s hugely successful Kindle Fire. And then, it was Amazon’s announcement to enter publishing which lets Amazon control the content that would normally reach consumers through booksellers like B&N. In what could be their strike against Amazon, B&N announced early this month that it will not stock books published by Amazon. This was in reaction to Amazon’s ‘exclusivity’ move back in December. “Our decision is based on Amazon’s continued push for exclusivity with publishers, agents and the authors they represent,” said Jaime Carey, chief merchandising officer, in a statement. “These exclusives have prohibited us from offering certain ebooks to our customers. Their actions have undermined the industry as a whole and have prevented millions of customers from having access to content. It’s clear to us that Amazon has proven they would not be a good publishing partner to Barnes & Noble, as they continue to pull content off the market for their own self-interest.” As the Amazon juggernaut continues to churn out great titles under the leadership of Laurence Krishbaum, I am not surprised that the company will resort to tactics like these. And the beauty of it all is that they can get away with it! It is because of the unique advantages this company has over others.
Who else is losing sleep over Amazon’s plans?
If Amazon has a philosophy, it should be “Reimagining the future of everything”! If you have been following this remarkable company, you probably know that Jeff Bezos announced late last year that Amazon will be not only retailing books but will actively work with big name authors to publish titles. The publishing industry is one of those industries which has failed to keep step with the changing times. This might be the only industry that still operates according to a business model that is a century old. Budding authors still have to rely on that elusive luck factor and hope that some overworked intern will manage to read their manuscript and one day their book will see the light of the day. If they have not already, the big five of the publishing industry- Random House, Harper Collins, Simon and Schuster, Holtzbrinck (Macmillan), and Penguin will lose sleep over this piece of news.
Here is a test to prove why publishing industry is long overdue for an overhaul. Name the publishers that 5 of your favorite authors are tied to. I bet you remember the authors but cannot name the publishers. Is it any wonder then that in a world where we are increasingly driven by social media and relationships, publishers are fearing companies like Amazon? It doesn’t help that readers are rapidly moving towards digital books and Amazon has an innate advantage over other publishing houses.Amazon will let authors and readers have a relationship with each other that was not possible until now.
If you have been reading this blog, have you noticed how many times we draw the same conclusions? For the publishers and booksellers, a valuable lesson is the mantra-innovate or perish. But is it too late for them to act on this?