Amazon and Hachette announced a multiyear agreement Thursday, Nov. 13, 2014, ending one of publishing's nastiest, most high-profile conflicts.Paul Sakuma/The Associated Press
Amazon.com Inc. and Hachette Book Group have resolved their dispute over the sale of print and digital books with a multiyear agreement in the U.S., ending a standoff that cut off supplies of some of the publisher's offerings.
The deal will take effect early next year. Hachette will set consumer prices of its e-books, and benefit from "better terms" when it delivers lower prices for readers, the companies said in a statement Thursday. Seattle-based Amazon will also prominently feature Hachette books in promotions.
The world's largest online retailer blocked pre-orders for some of Hachette's books earlier this year amid negotiations. Amazon sought lower prices, arguing that the move would boost sales and result in bigger total sales. Hachette resisted the move and gained the backing of many of its authors, who said the dispute was causing them to lose income.
"The new agreement will benefit Hachette authors for years to come," Michael Pietsch, Hachette Book Group's chief executive officer, said in the statement.
Amazon dominates e-book sales with 60 per cent of the market, according to Forrester Research. The company also helped pioneer the e-book market with the introduction of the Kindle device in 2007.
The deal with Hachette includes "specific financial incentives for Hachette to deliver lower prices," David Naggar, Amazon's vice-president for Kindle, said in the statement.
Publishers, Writers
The dispute cut off supplies of popular books, including The Silkworm, a new novel by J.K. Rowling writing under the pseudonym Robert Galbraith. Amazon has also appealed directly to authors, offering them all of the proceeds from the sale of any digital book in a letter in July.
"I'm relieved that Amazon and Hachette reached an agreement," said Douglas Preston, a Hachette author and leader of Author's United, which has been a vocal critic of Amazon's tactics. "I can only hope that, if disagreements arise in the future between Amazon and publishers, Amazon will never again seek to gain leverage by sanctioning books and hurting authors."
Malcolm Gladwell, author of books such as The Tipping Point: How Little Things Can Make a Big Difference, and Blink: The Power of Thinking Without Thinking, said before Thursday's agreement between Amazon and Hachette that the dispute "breaks my heart a little."
"I had thought of Amazon as in partnership with writers," Gladwell said in an interview with Bloomberg Television's Emily Chang.
Amazon's agreement with Hachette follows a multiyear deal between the Web retailer and publisher Simon & Schuster that was announced earlier this month. Carolyn Reidy, Simon & Schuster's chief executive officer, said the deal "maintains the author's share of income generated from e-book sales." Simon & Schuster gained control of digital-book pricing and also provides "flexibility to deliver great prices for readers."