HARDBACK BOOKS could be killed off if Amazon’s e-books and Google’s digital library force publishers to slash prices, Arnaud Nourry, chief executive of French publishing group Hachette, has warned.
Mr Nourry said unilateral pricing by Google, Amazon and other e-book retailers such as Barnes Noble could destroy publishers’ profits. He said publishers were “very hostile” to Amazon’s pricing strategy – regarding which the online retailer failed to consult publishers – to charge $9.99 (€6.98) in the US for all e-books.
He also pointed to plans by Google to put millions of out-of-copyright books online for public use. “On the one hand, you have millions of books for free where there is no longer an author to pay and, on the other hand, there are very recent books, best-sellers, at $9.99, which means that all the rest will have to be sold at between zero and $9.99,” Mr Nourry told the Financial Times.
There was a “muscular” debate in the US industry, he added. Retailers were paying publishers more than $9.99 per e-book, so were selling them at a loss: “That cannot last . . . Amazon is not in the business of losing money.
“So, one day, they are going to come to the publishers and say: by the way, we are cutting the price we pay. If that happens, after paying the authors, there will be nothing left for the publishers.”
Some rival publishers have expressed concern in private at Amazon’s fixed $9.99 per title pricing on its Kindle electronic reader. Others note the minimal costs of distributing books electronically mean they can make higher profit margins, even with lower prices than in print.
Mr Nourry’s comments come as analysts predict a growth spurt for the still-niche electronic reader market, with wireless devices from Sony, Plastic Logic and others due to compete with the Kindle.
Resistance to the Google books project from European libraries appears to be easing, with the National Library of France confirming this month that it was working with the US internet giant. – Copyright The Financial Times Ltd, 2009
