Originally Posted by TBell
I didn't agree with any of your post, but this quoted part really makes no sense (at least that I can understand). So you are telling me if one of three hold outs is responsible for publishing the next Harry Potter or Hunger Games it is going to be hurt because those books are not offered on Amazon?
I clarified this in a later post. Also, yes, removing your product from your largest outlet will hurt you. Amazon is the largest outlet of books.
Instead, it will be the other way around. Amazon will be hurt. We already know this because one or two publishers got into a tiff with Amazon when Amazon originally resisted the agency model. The publishers withdrew their content from Amazon. Not too long afterwards, Amazon caved and switched to the agency model. Amazon can't be the biggest book seller if all the publishers aren't offered there.
Of course Amazon would hurt too. But this isn't a one-sided blade. Both publishers and Amazon have leverage. Amazon needs the product and the publishers need Amazon's customers. If a publisher yanks a title, Amazon will lose sales, but since Amazon is the person in front of the customer, it can entice its customers to purchase other products. Publishers are one step removed from the customer since they don't do direct sales on any meaningful level, so they don't have the easy path to redirect customers. It then comes down to a who calls whose bluff.
However, this all looks like a moot point for three of the publishers who settled. I doubt they can pull their titles without a really good reason. And not liking how Amazon prices their titles is one reason that won't cut it.
Moreover, you apparently don't understand how retailers like Walmart and Amazon work. They attack the whole sale price. Walmart will tell a manufacturer to lower its price often times pressuring manufacturers to move operations overseas to places like China to satisfy these demands. Amazon does the same with books. To solidify its dominance with e-Books Amazon told publishers Amazon would not sell their traditional books if they did not substantially lower their wholesale price on e-Books allowing Amazon to aggressively lower the price on e-Books to the detriment of the more profitable traditional books. Your premise rests on the wholesale price remaining fixed and being set by publishers. The fact of the matter is large retailers have a strong influence on the wholesale price, which allows them to set low retail prices.
I do understand quite well, thank you, but my original point was how a product will give complications to the publisher when said product is sold under two different models by competing companies and how the company on agency will be at a disadvantage or the publisher will take less. I didn't address the future of Amazon putting pressure on lower wholesale prices, and I think they will. You won't get me arguing there. In fact, I think the settlement just gave Amazon free rein to hurt the publishers more than they expected when they worried about Amazon's tactics before the eventual agency model switch.