Hachette, Amazon end nasty feud with deal on book sales

Hachette, Amazon end nasty feud with deal on book sales

WASHINGTON - Publisher Hachette and Amazon ended Thursday an acrimonious feud over online book sales that highlighted Amazon's market dominance and fuelled protests from leading authors like John Grisham and Stephen King.

After six months in which Amazon clamped down on sales of Hachette Publishing Group books on its website, the two announced a multi-year agreement on ebook and print book sales in the US market.

The spat over who sets retail prices for online sales, especially ebooks, had outraged Hachette authors who saw their book sales sink after Amazon leveraged its power as the largest book retailer in the United States.

The two said in a statement that the deal, which came just as the holiday shopping season was opening, would be a plus for both authors and readers.

" Amazon and Hachette will immediately resume normal trading, and Hachette books will be prominently featured in promotions," they said in a statement.

Their fight raised issues over Amazon's overwhelming pricing power in the market vis-a-vis both publishers and readers, with the company facing protests not only in the United States but in Europe as well.

But it also brought a focus on the portion of the retail price that goes to the authors and how that is decided by publishers.

At one point, more than 900 authors, many of them perennial producers of best-sellers, signed a letter urging the two to settle the battle.

And popular comedian Stephen Colbert, a Hachette author, used his late-night television show to call for a boycott of Amazon, quipping that "Because of Amazon's scorched-earth tactics, more people are getting screwed than in 'Fifty Shades of Grey.'"

Such criticisms were effective in steering some book buyers to other online distributors as well as physical stores, though the size of that shift is not clear.

Amazon reported a higher loss in third-quarter earnings in October, but that was blamed mainly on the cost of promoting new products as well as its fight to retain market share based on low pricing.

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