Amazon

Congress Looking into Anticompetitive Behavior in the Digital Library Market

24 October 2019

From Publishers Weekly:

The American Library Association (ALA) has delivered a written report to the House Judiciary Committee telling lawmakers that “unfair behavior by digital market actors,” including Amazon and some major publishers, is “doing concrete harm to libraries.”

The report, delivered last week to a House antitrust subcommittee investigating competition in the digital market, comes as lawmakers are taking note of the growing backlash to Big Five publisher Macmillan’s decision to impose a two-month embargo on new release e-books in public libraries.

. . . .

The ALA comments break down what it sees as potentially “anticompetitive” behavior in the digital realm into two sectors—public and school libraries, and academic and research libraries. And no surprise, the two issues topping the list of ALA’s concerns: Amazon’s exclusive digital content, which is not available to libraries; and restrictions by the major publishers in the library e-book market.

“The worst obstacle for libraries are marketplace bans: refusal to sell services at any price,” ALA officials notes, pointing to Amazon Publishing. “The e-book titles from Amazon Publishing are not available to libraries for lending at any price or any terms. By contrast, consumers may purchase all of these titles directly from Amazon. This is a particularly pernicious new form of the digital divide; Amazon Publishing books are available only to people who can afford to buy them, without the library alternative previously available to generations of Americans.”

. . . .

A “related problem,” ALA asserts—though it is surely the primary problem libraries face on a day-to-day basis—is the increasingly restrictive, and costly market for e-books from the major publishers. This includes the “delayed release” of e-books to the library market, the ALA report states, pointing to Macmillan’s two-month embargo on new release e-book titles, scheduled to take effect on November 1, and “abusive” pricing for library e-books, where titles can often run more than four times the consumer price for two year licenses.

“Denying or delaying new content to libraries certainly is a market failure,” ALA states. “It also prevents libraries from accomplishing their democratizing mission of providing equal access to information to American citizens.”

. . . .

The inquiry comes after the House Judiciary Committee launched its investigation into competition in the digital market on June 3, 2019, with Chairman Jerrold Nadler (D-NY) citing “growing evidence that a handful of gatekeepers have come to capture control over key arteries of online commerce, content, and communications.”

Link to the rest at Publishers Weekly

Bezos will ‘break up his own company’ before regulators do

16 October 2019

From CNBC:

Amazon CEO Jeff Bezos could break up his own company before regulators do so themselves, Atlantic writer Franklin Foer predicts.

Foer, who wrote the Atlantic’s November cover story entitled “Jeff Bezos’s Master Plan,” said in an interview Tuesday on CNBC’s “Squawk Box” that people close to the CEO believe spinning off Amazon Web Services from the e-commerce business “would be the obvious thing for [Bezos] to do in the face of this.”

“I think that eventually Bezos, who is seeing around corners, is going to break up his own company,” Foer said. “AWS exists as its own fantastically profitable business. There’s no reason that it needs to be connected to Amazon the e-retailer. And as he looks at what’s happening in politics, where there’s this increasing bipartisan consensus that Big Tech is a problem, I’m pretty sure he’s going to say, ‘OK fine.’”

. . . .

AWS accounted for 13% of Amazon’s total revenue in the second quarter of 2019, but a whopping 52% of its $3.1 billion in operating income for the quarter.

Link to the rest at CNBC

PG says antitrust investigations can and have hamstrung lots of large, successful companies, even if they don’t result in sanctions.

The antitrust investigations and suits against Microsoft in 1994 and 1998 arguably prevented MS from exploiting internet opportunities that were taken by others. Google Chrome displaced Internet Explorer as one example. Ironically, during its early years, Microsoft benefited from antitrust lawsuits against IBM in the 1980’s.

If Bezos can avoid serious antitrust actions by voluntarily breaking up the company, the minified-Amazons might continue the company’s success free of any throttling constraints.

ISBN Registrations Jump 40% After Createspace is Merged Into KDP Print

16 October 2019
Comments Off on ISBN Registrations Jump 40% After Createspace is Merged Into KDP Print

From The Digital Reader

Bowker, the private company responsible for issuing ISBNs in the US, released its annual report on the number ISBN’s sold last year.

The data doesn’t tell us as much as some would think, but it did show that Amazon’s Createspace (aka KDP Print) bought the lion’s share of ISBNs in 2018. Out of 1,677,781 ISBNs registered in 2018, a total of 1,416,384 were sourced through Createspace. That is a jump of about half a million ISBN registrations from 2017, when Createspace accounted for 929,295 out of 1,192,345 ISBNs registered.

The increase is probably due to Createspace being bundled into KDP last year, and reflects authors taking the opportunity to create print editions for their existing ebooks.

Bowker concluded that the increase meant that “Self-Publishing Grew 40 Percent in 2018”, but I would be willing to bet any amount of money you cared to name that they are wrong. (I count print and ebook editions of a title as one, not several.)

The data is of course limited to mainly self-published authors in the USA, and is far from complete. For example, there’s no mention of Ingram Spark, a POD service that competes with Createspace slash KDP Print. That is probably because Ingram Spark recommends that everyone buy their own ISBN, preferably directly from Bowker.

Link to the rest at The Digital Reader

PG just noticed a typo in the title and fixed it.

Amazon’s Fourteen Leadership Principles

15 October 2019

Customer Obsession
Leaders start with the customer and work backwards. They work vigorously to earn and keep customer trust. Although leaders pay attention to competitors, they obsess over customers.

Ownership
Leaders are owners. They think long term and don’t sacrifice long-term value for short-term results. They act on behalf of the entire company, beyond just their own team. They never say “that’s not my job.”

Invent and Simplify
Leaders expect and require innovation and invention from their teams and always find ways to simplify. They are externally aware, look for new ideas from everywhere, and are not limited by “not invented here.” As we do new things, we accept that we may be misunderstood for long periods of time.

Are Right, A Lot
Leaders are right a lot. They have strong judgment and good instincts. They seek diverse perspectives and work to disconfirm their beliefs.

Learn and Be Curious
Leaders are never done learning and always seek to improve themselves. They are curious about new possibilities and act to explore them.

Hire and Develop the Best
Leaders raise the performance bar with every hire and promotion. They recognize exceptional talent, and willingly move them throughout the organization. Leaders develop leaders and take seriously their role in coaching others. We work on behalf of our people to invent mechanisms for development like Career Choice.

Insist on the Highest Standards
Leaders have relentlessly high standards — many people may think these standards are unreasonably high. Leaders are continually raising the bar and drive their teams to deliver high quality products, services, and processes. Leaders ensure that defects do not get sent down the line and that problems are fixed so they stay fixed.

Think Big
Thinking small is a self-fulfilling prophecy. Leaders create and communicate a bold direction that inspires results. They think differently and look around corners for ways to serve customers.

Bias for Action
Speed matters in business. Many decisions and actions are reversible and do not need extensive study. We value calculated risk taking.

Frugality
Accomplish more with less. Constraints breed resourcefulness, self-sufficiency, and invention. There are no extra points for growing headcount, budget size, or fixed expense.

Earn Trust
Leaders listen attentively, speak candidly, and treat others respectfully. They are vocally self-critical, even when doing so is awkward or embarrassing. Leaders do not believe their or their team’s body odor smells of perfume. They benchmark themselves and their teams against the best.

Dive Deep
Leaders operate at all levels, stay connected to the details, audit frequently, and are skeptical when metrics and anecdote differ. No task is beneath them.

Have Backbone; Disagree and Commit
Leaders are obligated to respectfully challenge decisions when they disagree, even when doing so is uncomfortable or exhausting. Leaders have conviction and are tenacious. They do not compromise for the sake of social cohesion. Once a decision is determined, they commit wholly.

Deliver Results
Leaders focus on the key inputs for their business and deliver them with the right quality and in a timely fashion. Despite setbacks, they rise to the occasion and never settle.

Amazon’s  Leadership Principles

Publishing Your Book Is Changing on IngramSpark

10 October 2019
Comments Off on Publishing Your Book Is Changing on IngramSpark

From The Book Designer:

I continue our saga about a new upload of a self-pub book to the standard folks. What if you haven’t done this in the last couple of years? What’s new?

I discussed the Amazon Kindle print book/ebook in some detail in my last post, which was Publishing Your Book is Changing on Amazon Kindle.

. . . .

So, is there a publishing life beyond Amazon Kindle? The answer is a definite yes, from my perspective. Moreover, authors play an important role in keeping our publishing system healthy by succeeding with a diversity of suppliers.

I want my printed books to be sold in independent bookstores, such as Book Passage, near me in California. They could do a direct order from Ingram or get consignment books from me.

I want a print-on-demand (POD) manufacturing source that would be acceptable to independent bookstores, plus chain bookstores, such as Barnes & Noble. I want a manufacturer who supplied libraries.

For all this I need Ingram. I also want some “Ingram-manufactured” books to sell to individuals and at events where the folks may not be “Amazon-friendly.” There are raging controversies about the book-selling ecosystem, as you probably know.

I also want my ebook version in iBooks, B&N, Kobo, and other ebook retailers beyond Amazon. For my ebook-for-everyone-beyond-Amazon, I chose Smashwords. I’ll discuss Smashwords next time in my “every-five-weeks” column in Joel’s publishing ecosystem.

. . . .

So, is there a publishing life beyond Amazon Kindle? The answer is a definite yes, from my perspective. Moreover, authors play an important role in keeping our publishing system healthy by succeeding with a diversity of suppliers.

I want my printed books to be sold in independent bookstores, such as Book Passage, near me in California. They could do a direct order from Ingram or get consignment books from me.

I want a print-on-demand (POD) manufacturing source that would be acceptable to independent bookstores, plus chain bookstores, such as Barnes & Noble. I want a manufacturer who supplied libraries.

For all this I need Ingram. I also want some “Ingram-manufactured” books to sell to individuals and at events where the folks may not be “Amazon-friendly.” There are raging controversies about the book-selling ecosystem, as you probably know.

I also want my ebook version in iBooks, B&N, Kobo, and other ebook retailers beyond Amazon. For my ebook-for-everyone-beyond-Amazon, I chose Smashwords. I’ll discuss Smashwords next time in my “every-five-weeks” column in Joel’s publishing ecosystem.

. . . .

The big new decision with Ingram, of course, was whether to move my four earlier books from their Lightning Source world over to the newer IngramSpark realm. Then I would place the new book also in Spark. After studying this, it appeared to me that a change was appropriate. So I requested it.

The Ingram response on this was fairly hospitable. As in all systems, the quality of your Customer Service experience can vary.

Here is what happened:

  • Ingram said they would add an opt in to change to Spark on my Lightning Source page, with the words Learn About Spark. This did appear, upper right center, in small type on my page. I almost missed it.
  • The “migration” from LSI to Spark proceeded smoothly and in an orderly way. I was required to sign the Global Distribution agreement and an Ebook Agreement, even though I was not uploading an ebook at this point.
  • Once I made the migration from LSI to Spark, they said it would be one-way. You are not coming back. That was OK. I did not plan to go back.
  • The prices for printed books would be the same, they said. I always choose the 55% discount because that is what is needed to get bookstore sales.
  • It appeared that with Spark I would avoid the $12/year Market Access fee that LSI charged for each of my titles each year. That would be welcome.
  • It appeared that, as a member of the Independent Book Publishers Association (IBPA), I would have a code and could avoid book setup fees. That would also be welcome. The book setup was a $49 cost. Later updates of the interior or cover file would incur a $25 charge, however, as I understood it.
  • I had a personal rep in LSI, but never used the service. So I felt no loss without a personal rep in Spark.
  • I had options for bank credit payments, etc. in LSI for large orders, rather than a simple credit card, but never used it. So, no loss. I could continue dreaming of imagined bulk purchases of my books. You will be among the first to learn about this when the lightning strikes.
  • Spark also appears to be an ebook-selling structure, not an option at LSI. I noted this, but did not intend to use Spark for selling ebooks at this time. I’ll watch to see how the Spark ebook option develops.
  • A welcoming note from Spark was encouraging. It had lots of their self-pub educational resources listed. Amazon Kindle, IngramSpark, and Smashwords are all major author-learning ecosystems if you take advantage of their how-to posts and videos.
  • When I engaged Spark in an online chat, they always sent an email follow-up with all the chat documentation written out. That was helpful. The chat was always so immediate that I had little desire to call by phone.
  • In one chat, for example, their rep confirmed that my book in IngramSpark would automatically show for librarians in the Baker & Taylor library listings, even if I did not spend $85 to advertise my book in their Ingram/Baker & Taylor catalog. That was good to hear.

I uploaded my new book in the PDF form requested. The system appeared to save everything as I moved forward. I first posted all the book data and then uploaded the interior file. All was saved.

Link to the rest at The Book Designer

Amazon Intellectual Property Accelerator

6 October 2019

From dayOne, the Amazon Blog:

Today, we’re excited to launch Amazon Intellectual Property Accelerator, a new program that helps brands more quickly obtain intellectual property (IP) rights and brand protection in Amazon’s stores. We created IP Accelerator specifically with small and medium businesses in mind, and IP Accelerator helps these entrepreneurs by making it easier and more cost effective to protect their ideas.

Expert legal guidance is critical for businesses to protect their brands and avoid costly mistakes in the trademark filing process. IP Accelerator solves this challenge by connecting businesses with a curated network of trusted IP law firms that provide high quality trademark registration services at competitive rates to help brands secure a trademark. When businesses use these law firms to file trademark applications, Amazon provides their brands with accelerated access to brand protection in Amazon’s stores.

. . . .

Amazon has vetted the participating IP law firms for experience, expertise, and customer service, and all have agreed to competitive, pre-negotiated rates for the standard services involved in obtaining a trademark registration. These law firms help ease the trademark filing process, including researching a brand to see if anyone else is already using it and filing trademark applications to protect it. In addition to trademark applications, these firms can also help with additional IP needs such as copyright registrations, design patents, and broader IP protection strategies, making it easy for businesses to get tailored solutions for their brands.

“We’re very excited Amazon has a list of legal firms that can advise us in our trademark needs. We have struggled finding counsel for trademark specific questions as we are a small company and work with limited budgets. Having the peace of mind that Amazon has vetted these firms and negotiated pricing for us lets us focus on what matters—building our brand” said Sonali Nayak, owner of Indigo Paisley.

Using IP Accelerator takes the guesswork out of the trademark filing process. These law firms know the ins-and-outs of IP and can save businesses both money, and time—a proper, well drafted trademark application can significantly reduce the time required to secure a trademark registration. Amazon does not charge businesses to use IP Accelerator—they only pay their law firm for the work performed at the pre-negotiated rates.

. . . .

Because the participating law firms have been thoroughly vetted, when a business works with one of the law firms in IP Accelerator and a trademark has been filed on their behalf, they will be strong candidates for registration. As a result, Amazon will provide these brands with accelerated access to brand protections in Amazon’s stores, to better protect their brand months, or even years, before their trademark registration officially issues. Brands will benefit from automated brand protections, which proactively block bad listings from Amazon’s stores.

Link to the rest at dayOne, the Amazon Blog

Amazon is Shutting Down Kindle Matchbook, Its Print+eBook Bundling ProgramAmazon is Shutting Down Kindle Matchbook, Its Print+eBook Bundling Program

30 September 2019

From The Digital Reader:

It’s only been a few short days since Amazon announced that Amazon Giveaways was ending, and now they’ve decided to shut down another promotion service.

. . . .

Starting October 31, we’re retiring the Kindle MatchBook program. If you have books enrolled in Kindle MatchBook, they’ll be unenrolled at that time.

Here are a couple things to know:

  • Readers will still be able to buy books in their preferred format (eBook or paperback).
  • We’ll issue payments from any remaining Kindle MatchBook sales on your regular payment schedule.

Best regards,
The Kindle Direct Publishing Team

Launched in 2013, Kindle Matchbook was a program where authors and publishers had the option of creating ebook+print bundles that combine a Kindle ebook with a print book sold by Amazon. The ebook could be given away for free, or sold for $1.99 or $0.99.

. . . .

Most authors have never heard of it, and the ones that do have books in the program report that there was little interest from readers. “I can see why they are retiring it. I’ve had all my books enrolled in Matchbook since the beginning, allowing people to get a free ebook copy of any paperback they buy,” Shawn Inmon wrote on FB. “I think I’ve given away maybe 20 copies in all those years. It just doesn’t seem to be something people are interested in.”

Link to the rest at The Digital Reader

At ‘Captions’ Hearing, Judge Hammers Audible’s Fair Use Argument

27 September 2019

From Publishers Weekly:

If the decision to issue a preliminary injunction against Audible’s “Captions” program comes down to fair use, Audible may be in trouble.

Over the course of a 90-minute hearing on Wednesday, federal judge Valerie Caproni appeared thoroughly unmoved by Audible’s defense of its Captions program, and highly skeptical that Audible’s plan to scroll snippets of computer generated text alongside audiobooks in its app should be called anything other than what it is: reading.

Opening the day’s arguments, the plaintiff publishers’ attorney Dale Cendali told the court that Audible’s Captions program was “quintessential” copyright infringement, and was quickly engaged by Caproni, who questioned whether the “clunky” experience of Captions really competed with reading a book. Cendali, well prepared for the question, responded that Captions didn’t need to be “a substitute” for a book for it to be harmful. Captions “provides a reading experience,” Cendali stressed, “saying it is something other than that just doesn’t make sense.”

. . . .

Cendali hit all the major points in the publishers’ complaint, finding a mostly receptive audience in Caproni. Captions is not transformative, she argued, and it is commercial in nature. Despite its “public benefit” argument, Audible is in fact seizing what should be a negotiated right to gain a competitive advantage over its competitors, Cendali stressed. If allowed to go forward, Captions would harm the market for books, e-books, and immersion reading; weaken rightsholders’ ability to license works in other markets; “devalue and cheapen” those rights by offering the feature as a free add-on; and the poor quality of the Captions program would cause reputational harm to authors and publishers who might be associated with a shoddy program, their works wrested from their control without permission.

The last point seemed to especially hit its mark with Caproni as an example of the kind irreparable harm—distinct from the market harm also in play—required to win a preliminary injunction. “As much as there might be a moral rights issue [in U.S. copyright law] this is a moral rights issue,” Cendali argued. “The damage this does would be impossible to measure. Money damages cannot make up for this. It affects the entire industry. This is a sea change, what they are trying to do. That’s why you have all these publishers, authors, and the agents here together. That shows you how dramatic it is.”

. . . .

Captions is designed to work alongside an audiobook, not “divorced” from it, [Amazon’s attorney] argued, and it does not provide a reading experience.

“What do you mean it’s not a reading experience?” Caproni interjected. “It’s words.”

What followed was a strained back and forth about what constitutes reading a book, with Reisbaum suggesting that seeing words as you listen to them is, well, something else.

“The fact that you can see the words doesn’t make it a book,” Reisbaum insisted at one point, trying to convince the judge that Captions is an enhanced audio experience, not a book experience—users couldn’t flip forward or back at their own pace, for example, nor could the text be stored, or shared, or skimmed. The experience was designed to increase comprehension of the “words” that Audible customers have paid for. Caproni didn’t appear to be buying it. “They paid to have the words read to them,” she pointed out.

. . . .

Cendali reiterated that none of the publishers’ agreements granted Audible the right to generate and distribute text.

But that’s a conclusion not supported by evidence before the court, Reisbaum insisted. The parties have acknowledged that they have valid license agreements. Captions is a program to be used with that licensed content. Without seeing those agreements, and where Audible is alleged to have breached them, how does the court know that speech-to-text is not covered under those licenses?

But perhaps the most surprising moment came when Caproni realized that Captions had not launched, and that a launch was not imminent. Why was she being asked to grant a preliminary injunction?

. . . .

The publishers strongly protested. “We beg you to rule on the motion,” Cendali pleaded with the judge, saying that the uncertainty surrounding the Audible program was already impacting the publishers, harming their ability to do other deals. Caproni replied that it was only a preliminary injunction at stake, that there would still be uncertainty even if she granted it. Why not get right to trial and resolve the issue?

“They can’t just do a head fake,” Cendali said referring to Audible’s still unannounced launch date, adding that not ruling on the motion would give Audible “a get out of jail free card.”

“It’s not a get out of jail free card,” Caproni responded. “I don’t have any get out of jail free cards. What I have is a chance card,” she said, pointing out that the publishers could possibly lose the motion. Caproni reserved ruling for a later date.

Link to the rest at Publishers Weekly

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