In an open заявлении
about their relationship
with izdatelstom Hachette (the fourth largest in the US), the company blamed Hachette Amazon is that it sets unreasonably high prices electronic versions of books, and underestimates the share of payments to authors from the sales of these books.
The statement said: "with the electronic versions of books, Publishing assumes no printing costs, risk of overstatement of circulation, the cost of sales forecast, returns, lost profits from a lack of circulation, the cost of storage and transportation. Also for e-books do not have a secondary market - they can not be resold as second-to-use book. E-books can and should cost less ».
According to Amazon, setting the price of e-books in 14, 99 or even 19, $ 99, publishing ultimately loses in profits. According to company estimates, while reducing the price of 14, 99 and 9, 99 sales increase of 1, 74 times, that is, instead of revenue of $ 1.499 million 100 thousand books publishing house would receive 1.738 million dollars - 16% more and increase the audience that can help get the book author bestseller list.
According to the company, the distribution of the proceeds shall be as follows: 35% to the author, the publisher of 35% and 30% of the Amazon. "Is it reasonable to share in the 30%? Yes. In fact, 30% of total revenue - is that portion which Hachette imposed on us in 2010, joining the price collusion with competitors to raise prices for electronical books. We do not claim to 30% - but we have big claims to increase prices, "- the statement says.
Amazon also does not make payments directly to the authors of books sold under contract with publishers. At the moment, Amazon pays 70% of the publishers who decide what proportion should receive the authors. "In our opinion, Hachette shares with authors too small share of the profits - but, ultimately, it is not for us to decide" - writes Amazon.
Business "war" with Hachette began several months ago when Amazon removed the possibility of pre-order books produced by the publishing house, and recommendations on the page began to offer cheaper alternatives. To win over the authors, Hachette Amazon offered to pay 100% of proceeds to the authors, the publisher has to answer: "it's suicide."