9 Replies Latest reply on Sep 7, 2013 1:08 PM by Yaucolion

    Amazon announces Kindle MatchBook

    Doug_Pardee

      Amazon has taken another big swing at the e-book market. Starting next month, you can buy discounted Kindle versions of certain printed books that you bought from Amazon. No time limit on when the purchase was made, but the list of qualifying titles is limited — "thousands", they say. E-book pricing will be $2.99 or less, maybe even free for some titles.

       

      Publishers Weekly reports that initial qualifying titles are from HarperCollins and (no surprise) from Amazon's own publishers. Publishers and authors will be paid based on the discounted sale price.

       

        • Re: Amazon announces Kindle MatchBook
          bobstro

          Reading the subject, I had visions of a really tiny ebook reader. 

           

           

          • Re: Amazon announces Kindle MatchBook
            susgod

            Will B&N adopt this practice?

            • Re: Amazon announces Kindle MatchBook
              LectorGS

              The matchbox is one of the things amazon announced today.  They are also launching a "new" and "improved" KPW.  This new version seems to be an upgraded of the old one.  Reading the responses of the people participating in the amazon's discussion forums, it's obvious that the response expected by the company has not been so positive.

                • Re: Amazon announces Kindle MatchBook
                  flyingtoastr

                  This doesn't matter.

                   

                  1. Amazon can't lose money on their ebook division, and the DOJ will be auditing it for 5 years for compliance. It's part of the settlement from the Apple case, and if Amazon breaks it they're going to get killed legally for breach of contract. So they can't just unilaterally give away cheap books and foot the cost themselves - the publisher has to be offering that discount. Which brings us to #2.

                   

                  2. BN still has massive clout with the publishers (look at the recent S&S kerfuffle). If any of the major publishers do decide to go along with Amazon's scheme you can bet your bonnet Bn will get the same deal.

                   

                  So it's going to be Amazon screwing their self-published authors by auto-signing them up for this service. Much like their lending library is pretty much just KDP and a couple dozen bestsellers they were able to get the rights to so they have something worthwhile to throw on banner ads.

                    • Re: Amazon announces Kindle MatchBook
                      bobstro

                      Well... it matters if B&N can provide the same!

                      • Re: Amazon announces Kindle MatchBook
                        Yaucolion
                        DOJ is not going to monitor Amazon. Apple wanted Amazon to stop pricing books at a loss that's why APPLE was the one on trial.

                        Additionally, authors will not be screwed by MatchBook. On the contrary, they will now sell the ebook AND the print book.

                        In the end, the customer is the one that wins the most.
                          • Re: Amazon announces Kindle MatchBook
                            bobstro
                            Short term, it may be a boon for some customers. Long term is more difficult to say if Amazon is the only one to adapt, and do so by forcing authors and publishers to play along due to their market domination. That said, it's up to publishers (and self-publishing authors) to figure this out while they still have options and control.
                            • Re: Amazon announces Kindle MatchBook
                              flyingtoastr

                              Yaucolion wrote:
                              DOJ is not going to monitor Amazon. Apple wanted Amazon to stop pricing books at a loss that's why APPLE was the one on trial.

                              Additionally, authors will not be screwed by MatchBook. On the contrary, they will now sell the ebook AND the print book.

                              In the end, the customer is the one that wins the most.

                              This has nothing to do with Apple's court judgement. It's from the settlement agreements that the publishers came to with the DOJ. Part of the agreement is that no ebook retailer may go quarterly negative for any specific publisher. Amazon can not subsidize their ebook prices to a point that would cause them to go negative or else they get slammed with injunctions and fines. Thus, they have to get the publishers to agree to sell their ebooks at a loss.

                               

                              The authors get screwed because KDP pays author royalties based on the selling price of the book. If the ebook is selling for $.99 instead of $9.99 they're losing a huge amount of royalties.

                               

                              What's next?

                                • Re: Amazon announces Kindle MatchBook
                                  Yaucolion

                                  The settlement which you speak of does not keep Amazon from selling titles at a loss.  Under the terms of the settlement, Amazon can sell titles below cost so long as all their e-book sales together do not add up to a loss.  Which translates to: They can sell some ebooks at a loss as long as their entire ebook sales don't add up to a loss, and the publisher can't dictate Amazon's sale prices on individual books. No breach of contract incurred, no jail time, no fines, etc.  Jeff Bezos is safe.

                                   

                                  As for authors getting screwed by KDP, you are wrong again.  Amazon royalties are 70% on books $2.99 and under.  Traditional publishing royalties are 17-18%.  In order for a traditionally published author to make the same amount in royalties from their books they would have to sell each book for about $11.00.  Whip out your calculator and do the math, and consider that an author will sell many, many more books at $2.99 than at $11.00.   This is why KDP authors are very, very happy with their deals.  

                                   

                                  The bottomline is I can get my books cheaper and authors are raking in the dollars.

                                   

                                  Additionally, MatchBook would allow publishers and authors to make money out of old books that customers wouldn't even bother to get if it wasn't from this program.  More money in the bank.

                                   

                                  I could go on but, my Nook is waiting for me to turn the page.