This whole issue of how ebooks are priced, what they’re worth to consumers, and how to make money off of them is actually pretty complicated. It’s also fascinating, at least to someone like me; for the first 18 months after I bought a Kindle I demanded that no publisher ever go above the $10 mark. (I’ve since softened my stance somewhat for new releases, although personally I don’t buy ebooks over $10 regardless.)

Two of the best explanations I’ve found come from published writers who have an obvious interest in what Amazon and publishers end up doing:

Read “Amazon, Macmillan: an outsider’s guide to the fight” by Charles Stross

Read “Why my books are no longer for sale via Amazon” by Tobias Buckell

Bonus! Read “Kindle Numbers: Traditional Publishing Vs. Self Publishing” by Joe Konrath for an alternate take on earning money from ebooks if you’re a midlist writer.

Set aside 10-15 minutes and read these two (or three) guys for some great insights, for example on Amazon’s reasons for holding to the $10 price point (hint: it’s not really for our benefit), on how much it costs to publish a high quality ebook, and on how to price more efficiently to take advantage of what different customers are actually willing to pay (hardcore fans are usually willing to give more support to their favorite authors).

This post originally appeared on Kindlerama.

(Photo: kretyen)

I attended a Google Book Search settlement workshop yesterday hosted by the National Writer’s Union (NWU), the American Society of Journalists and Authors (ASJA), and the Science Fiction & Fantasy Writers of America (SFWA). The workshop’s panel included representatives of those organizations as well as an agent, a professor who has been studying the issue, and the executive director of the Authors Guild, which is one of the primary parties involved in the settlement. Here are the main themes from the event.

 

“A settlement isn’t the right way to settle this.”

New York Law School Associate Professor James Grimmelmann, who remained a largely non-partisan outside observer (although he has stated he thinks the settlement should be approved, with modifications), pointed out that a class-action lawsuit isn’t the right way to determine an issue like fair use under copyright law. It needs to be addressed by the government and not through private negotiations, he said, because it has huge societal implications.

Grimmelmann also pointed out that if the settlement goes through, it’s likely Google will emerge with a huge market advantage over any potential competitors, which may negatively impact any healthy competition in the marketplace.

Paul Aiken, executive director of the Authors Guild and a lawyer, argued that the risk of losing the lawsuit was too great: if the courts found Google’s scanning to fall under fair use–as Grimmelman and at least one other legal expert think it could–then others would copy Google’s scanning project. “In our view,” he told the hostile crowd, “It would be catastropic.”

Grimmelman responded that the proposed settlement wasn’t the only valid solution, and that there could have been other paths to a compromise.

 

“The settlement is overreaching, and probably untenable.”

Lynn Chu, an attorney, author, and book agent, was the most vocal opponent of the settlement, calling it an “outrageously bad deal as a financial matter” for writers and a “typical entertainment industry scam.” At one point she implied that the Authors Guild had been misled by incompetent legal counsel, which not surprisingly seemed to anger Aiken.

Chu pointed out that the business model proposed by the settlement has nothing to do with the original lawsuit, which was solely about fair use. “You glued a business contract to a waiver,” she told Aiken, and accused the Authors Guild of appointing itself as an agent to the world’s authors.

She also criticized the proposed Book Rights Registry, which is sort of an ASCAP for authors appearing in Google Book Search, noting that it would help Google shift costs over to authors by forcing authors to take care of administrative and publishing tasks on their own dime.

“[The settlement] probably won’t survive an appeal,” she told the crowd, a sentiment that Grimmelmann seemed to agree with. Still, she cautioned, “There’s no reason to be apathetic.”

 

“The settlement isn’t really author-friendly at its core.”

Edward Hasbrouck of the NWU pointed out a worst-case scenario that could happen to an author under the terms of the settlement: You have a book included in the database, but your ex-publisher claims that because it has authorized a print-on-demand version of the book it still owns the rights, so you and the publisher agree to binding arbitration and you lose. Since the arbitration is legally enforceable, you will have permanently lost your claim of ownership over the digital copy in Google’s database.

Chu noted that Google reserves the right to audit the Book Rights Registry, but that the favor isn’t returned because Google claims trade secrets will be compromised. She also noted that authors can make their own deals with Google and don’t need to rely on the settlement.

Note: the Science Fiction & Fantasy Writers of America hosted an online panel discussion this morning. You can read through it at http://sfwa.org/online-google-settlement-panel/.

Last week, the BBC Radio 4 program Open Book focused on the role of the editor in publishing a work. Host Mariella Frostrup interviewed five editors or author-editor combos about what value an editor–whose job didn’t really formally exist until after World War II–provides.

You can listen to the half-hour show here; the first 10 minutes alone are worth it just to hear Diana Athill talk about the unique editing requirements of Updike, Naipul, and Rhys. But here’s a summary of key points from the full episode:

• An editor can help shore up a writer’s weaknesses. Some writers may be masters of language, but need help shaping something into a finished work. Other writers may be great writers but lousy at taking care of other essential life tasks, so they would otherwise never write or publish without someone’s help.
• An editor is a guaranteed, and perhaps the only, extremely attentive reader a writer will have. Diana Athill says, “What one learns when you’re working with an eidtor, is that actually very few peole get their books read extremely attentively by anybody. A writer is dying to have his or her work read with complete attention. And here is this editor person, and the one thing they have done is they have paid full attention to your work, which is very gratifying.”
• An editor may act more like an agent or a music producer. Some editors will work closely with writers to help them determine career steps, going so far as to advise on what sort of book to write next. Others, like Raymond Carver’s editor Gordon Lish, will manipulate the original manuscript so much that their role becomes something more collaborative, or even borderline Svengali-like, as with music producers.

Open Book for Thursday, 31 Dec 2009 [BBC]
(Photo: Nic’s events)

Wow! I’m so behind the curve on all the release-date drama over Stephen King’s newest book, Under the Dome, which based on critical reception and fan buzz seems poised to become one of his classics alongside works like The Stand and Misery. I completely missed the news, two weeks ago, that Scribner has decided to delay the release of the ebook edition by a month in order to help drive hardcover sales. This has understandably infuriated those Kindle-owning King fans who have been primed–thanks to Scribner’s own massive marketing campaign–to jump on the book when it comes out next week, but who will now have to wait another month.

I sort of get why they did it, or at least I think I do. Scribner wants consumers to understand that the hardcover retains pride of place in the world of release dates, and if you really want a new book you’ll have to pay a premium by choosing the hardcover. They also want to send a message (to Amazon? surely not to consumers, who have no say over the matter) that the $10 price point for new releases is unacceptable.

I also think I understand why they chose King’s new novel, which is the publishing world’s equivalent to an AT-AT walker. They want to ensure that the experiment works.

But did Scribner choose the wrong battle by trying to reinforce this false hierarchy of print over digital? I think they wasted an opportunity to reset ebook pricing expectations with consumers, and they’re wasting marketing dollars too.

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Cory Doctorow, the sci-fi author and ebook pioneer (at least when it comes to DRM and pricing), announced this month in his new Publishers Weekly column that he’s about to embark on a bold publishing experiment. He says he’s going to publish his next book on his own, or at least without a publisher’s help, as he’ll be calling in favors from professionals to help with artwork, editing, and printing. He’s going to use all the unconventional distribution formats he’s now familiar with, and he’s going to make a profit.

Best of all for the rest of us, he says he will document the process and share the results, which means any writer or publisher curious about digital distribution will be able to benefit from whatever happens. I’m rooting for ya, Doctorow.

I also think it might be interesting to look at this experiment in the context of three other online distribution experiments.

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