Amazon Signs Up Authors, Writing Publishers Out of Deal

by DAVID STREITFELD  •  Oct. 16, 2011 ;  NY Times

SEATTLE —
<http://topics.nytimes.com/top/news/business/companies/amazon_inc/index.html
?inline=nyt-org> Amazon.com1
<http://www.readability.com/articles/pakyokrz?legacy_bookmarklet=1#rdb-footn
ote-1>  has taught readers that they do not need bookstores. Now it is
encouraging writers to cast aside their publishers. 

Amazon will publish 122 books this fall in an array of genres, in both
physical and e-book form. It is a striking acceleration of the retailer’s
fledging publishing program that will place Amazon squarely in competition
with the New York houses that are also its most prominent suppliers. 

It has set up a flagship line run by a publishing veteran
<http://artsbeat.blogs.nytimes.com/2011/05/23/agent-and-former-publisher-to-
lead-new-imprint-for-amazon> 2
<http://www.readability.com/articles/pakyokrz?legacy_bookmarklet=1#rdb-footn
ote-2> , Laurence Kirshbaum, to bring out brand-name fiction and nonfiction.
It signed its first deal with the self-help author Tim Ferriss
<http://www.nytimes.com/2011/08/17/technology/amazon-set-to-publish-tim-ferr
iss.html> 3
<http://www.readability.com/articles/pakyokrz?legacy_bookmarklet=1#rdb-footn
ote-3> . Last week it announced a memoir by the actress and director Penny
Marshall, for which it paid $800,000, a person with direct knowledge of the
deal said. 

Publishers say Amazon is aggressively wooing some of their top authors. And
the company is gnawing away at the services that publishers, critics and
agents used to provide. 

Several large publishers declined to speak on the record about Amazon’s
efforts. “Publishers are terrified and don’t know what to do,” said Dennis
Loy Johnson of Melville House, who is known for speaking his mind. 

“Everyone’s afraid of Amazon,” said Richard Curtis, a longtime agent who is
also an e-book publisher. “If you’re a bookstore, Amazon has been in
competition with you for some time. If you’re a publisher, one day you wake
up and Amazon is competing with you too. And if you’re an agent, Amazon may
be stealing your lunch because it is offering authors the opportunity to
publish directly and cut you out. 

“It’s an old strategy: divide and conquer,” Mr. Curtis said. 

Amazon executives, interviewed at the company’s headquarters here, declined
to say how many editors the company employed, or how many books it had under
contract. But they played down Amazon’s power and said publishers were in
love with their own demise. 

“It’s always the end of the world,” said Russell Grandinetti, one of
Amazon’s top executives. “You could set your watch on it arriving.” 

He pointed out, though, that the landscape was in some ways changing for the
first time since Gutenberg invented the modern book nearly 600 years ago.
“The only really necessary people in the publishing process now are the
writer and reader,” he said. “Everyone who stands between those two has both
risk and opportunity.” 

Amazon has started giving all authors, whether it publishes them or not,
direct access to highly coveted Nielsen BookScan sales data
<http://latimesblogs.latimes.com/jacketcopy/2010/12/amazon-gives-nielsen-boo
kscan-to-authors.html> 4
<http://www.readability.com/articles/pakyokrz?legacy_bookmarklet=1#rdb-footn
ote-4> , which records how many physical books they are selling in
individual markets like Milwaukee or New Orleans. It is introducing the sort
of one-on-one communication between authors and their fans that used to
happen only on book tours. It made an obscure German historical novel a
runaway best seller without a single professional reviewer weighing in. 

Publishers caught a glimpse of a future they fear has no role for them late
last month when Amazon introduced the Kindle Fire
<http://www.nytimes.com/2011/09/29/technology/amazon-unveils-tablet-that-und
ercuts-ipads-price.html> 5
<http://www.readability.com/articles/pakyokrz?legacy_bookmarklet=1#rdb-footn
ote-5> , a tablet for books and other media sold by Amazon. Jeffrey P.
Bezos, the company’s chief executive, referred several times to Kindle as
“an end-to-end service,” conjuring up a world in which Amazon develops,
promotes and delivers the product. 

For a sense of how rattled publishers are by Amazon’s foray into their
business, consider the case of Kiana Davenport, a Hawaiian writer whose
career abruptly derailed last month. 

In 2010 Ms. Davenport signed with Riverhead Books, a division of Penguin,
for “The Chinese Soldier’s Daughter,” a Civil War love story. She received a
$20,000 advance for the book, which was supposed to come out next summer. 

If writers have one message drilled into them these days, it is this: hustle
yourself. So Ms. Davenport took off the shelf several award-winning short
stories she had written 20 years ago and packaged them in an e-book,
“Cannibal Nights,” available on Amazon. 

When Penguin found out, it went “ballistic,” Ms. Davenport wrote on her
blog, accusing her of breaking her contractual promise to avoid competing
with it. It wanted “Cannibal Nights” removed from sale and all mentions of
it deleted from the Internet. 

Ms. Davenport refused, so Penguin canceled her novel and has said it will
pursue legal action if she does not return the advance. 

.

  _____  

(Page 2 of 2)

“They’re trying to set an example: If you self-publish and distribute with
Amazon, you do so at your own risk,” said Jan Constantine, a lawyer with the
Authors Guild who has represented Ms. Davenport. 

The writer knows her crime: “Sleeping with the enemy.” Penguin declined to
comment. 

If some writers are suffering collateral damage, others are benefiting from
this new setup. Laurel Saville was locked out by the old system, when New
York publishers were the gatekeepers. “I got lots and lots of praise but no
takers,” said Ms. Saville, 48, a business writer who lives in Little Falls,
N.Y. 

Two years ago she decided to pay for the publication of her memoir about her
mother’s descent from California beauty queen to street person to murder
victim. She spent about $2,200, which yielded sales of 600 copies. Not
horrible but far from earth-shaking. 

Last fall, Ms. Saville paid $100 to be included in a Publishers Weekly list
of self-published writers. The magazine ended up reviewing her memoir,
giving it a mixed notice that nevertheless caught the attention of Amazon
editors. They sent Ms. Saville an e-mail offering to republish the book. It
got an editorial once-over, a new cover and a new title: “Unraveling Anne.”
It will be published next month. 

Ms. Saville did not get any money upfront, as she would have if a
traditional publisher had picked up her memoir. In essence, Amazon has
become her partner. 

“I assume they want to make a lot of money off the book, which is
encouraging to me,” said Ms. Saville, who negotiated her deal without an
agent. 

Her contract has a clause that forbids her from discussing the details,
which is not traditional in publishing. The publicity plans for the book are
also secret. 

Can Amazon secretly create its own best sellers? “The Hangman’s Daughter”
was an e-book hit. Amazon bought the rights to the historical novel by a
first-time writer, Oliver Pötzsch, and had it translated from German. It has
now sold 250,000 digital copies. 

“The great and fascinating thing about Amazon’s publishing program is that
there can be these grass-roots phenomena,” said Bruce Nichols of Houghton
Mifflin Harcourt, which republished the novel
<http://hmhbooks.com/catalog/titledetail.cfm?titleNumber=1486264&searchStrin
g=Hangman%E2%80%99s%20Daughter>  this summer. 

Ms. Saville no longer even contemplates a career with a traditional
publisher. “They had their shot,” she said. She is now writing a novel. “My
hope is Amazon will think it’s wonderful and we’ll go happily off into the
publishing sunset,” she said. 

.

  _____  


References


1.      ^
<http://www.readability.com/articles/pakyokrz?legacy_bookmarklet=1#rdb-footn
ote-link-1> Amazon.com
<http://topics.nytimes.com/top/news/business/companies/amazon_inc/index.html
?inline=nyt-org>  (topics.nytimes.com) (
http://topics.nytimes.com/top/news/business/companies/amazon_inc/index.html?
inline=nyt-org )
2.      ^
<http://www.readability.com/articles/pakyokrz?legacy_bookmarklet=1#rdb-footn
ote-link-2> run by a publishing veteran
<http://artsbeat.blogs.nytimes.com/2011/05/23/agent-and-former-publisher-to-
lead-new-imprint-for-amazon>  (artsbeat.blogs.nytimes.com) (
http://artsbeat.blogs.nytimes.com/2011/05/23/agent-and-former-publisher-to-l
ead-new-imprint-for-amazon )
3.      ^
<http://www.readability.com/articles/pakyokrz?legacy_bookmarklet=1#rdb-footn
ote-link-3> Tim Ferriss
<http://www.nytimes.com/2011/08/17/technology/amazon-set-to-publish-tim-ferr
iss.html>  (www.nytimes.com) (
http://www.nytimes.com/2011/08/17/technology/amazon-set-to-publish-tim-ferri
ss.html )
4.      ^
<http://www.readability.com/articles/pakyokrz?legacy_bookmarklet=1#rdb-footn
ote-link-4> Nielsen BookScan sales data
<http://latimesblogs.latimes.com/jacketcopy/2010/12/amazon-gives-nielsen-boo
kscan-to-authors.html>  (latimesblogs.latimes.com) (
http://latimesblogs.latimes.com/jacketcopy/2010/12/amazon-gives-nielsen-book
scan-to-authors.html )
5.      ^
<http://www.readability.com/articles/pakyokrz?legacy_bookmarklet=1#rdb-footn
ote-link-5> introduced the Kindle Fire
<http://www.nytimes.com/2011/09/29/technology/amazon-unveils-tablet-that-und
ercuts-ipads-price.html>  (www.nytimes.com) (
http://www.nytimes.com/2011/09/29/technology/amazon-unveils-tablet-that-unde
rcuts-ipads-price.html )

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ok-publishing.html?nl=technology
<http://www.nytimes.com/2011/10/17/technology/amazon-rewrites-the-rules-of-b
ook-publishing.html?nl=technology&emc=techupdateema1> &emc=techupdateema1

 

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