Monday, October 06, 2014

Is the NYT Coverage of Amazon vs. Hachette Really Propaganda?

By now you've seen the NYT Public Editor's piece criticizing her own newspaper's coverage of the Amazon/Hachette situation.

Note to David Streitfeld: see what Margaret Sullivan did? Being a competent reporter, she researched the situation and presented both sides of the story. That means quotes from authors representing both sides, and quotes from the very source (you) she was critical of.

She's an excellent, smart, fair journalist, Mr. Streitfeld. Put your hat in your hand and go thank her. After you have, ask her for some pointers.

As well done as the piece was, Ms. Sullivan did write something that I didn't agree with.

"A pro-Amazon author (Barry Eisler) charges that the paper is spewing propaganda...“propaganda” is a stretch..."

Is it really a stretch? Let's dig a little deeper.

According to Wikipedia:

Propaganda is information that is not impartial and used primarily to influence an audience and further an agenda, often by presenting facts selectively (thus possibly lying by omission) to encourage a particular synthesis, or using loaded messages to produce an emotional rather than rational response to the information presented.

Hyperlinked in that definition is "impartial" which leads to a wiki about journalistic objectivity:

Journalistic objectivity can refer to fairness, disinterestedness, factuality, and nonpartisanship, but most often encompasses all of these qualities.

Also linked is "lying by omission":

Also known as a continuing misrepresentation, a lie by omission occurs when an important fact is left out in order to foster a misconception. Lying by omission includes failures to correct pre-existing misconceptions.

And "loaded messages":

In rhetoric, loaded language (also known as loaded terms or emotive language) is wording that attempts to influence an audience by using appeal to emotion or stereotypes.

Mr. Streitfeld says his stories have been driven by one value: "newsworthiness". Back to Wikipedia:

Newsworthiness does not only depend on the topic, but also the presentation of the topic and the selection of information from that topic.

Is Streitfeld presenting his topics well? What information is he selecting about the topic? Does it err to the side of journalistic objectivity?

Let's go back to May when the Amazon/Hachette story broke and Streitfeld wrote this piece. Looking at the definitions above, do these quotes from Streitfeld's piece qualify as propaganda?

Streitfeld: Among Amazon’s tactics against Hachette, some of which it has been employing for months, are charging more for its books and suggesting that readers might enjoy instead a book from another author.

Joe sez: Amazon "charging more for its books" actually means Amazon is charging Hachette's suggested retail price. Amazon suggesting that readers might enjoy a book from another author "instead" is unproven. Amazon advertises other authors' books on every book page. This isn't unique to Hachette. Amazon also offers used books for considerably less than the price of the new version, on the very same page. (buy Whiskey Sour for only $0.01!) But where has Amazon said "Buy this instead of this"?The word "instead" is loaded.

Streitfeld: The scorched-earth tactics arose

Joe sez: Scorched-earth? Misrepresentation, and loaded.

Streitfeld: “Outliers” was selling Friday for $15.29, a mere 10 percent discount. On Barnes & Noble, the book was $12.74.

Joe sez: See how the word "mere" is not impartial? No mention that many indie bookstores don't discount at all.

Streitfeld: Amazon raised the price of her book by $8. Then it ran a banner recommending other less expensive diet books.

Joe sez: Instead, how about: "Amazon raised her price to the one her publisher printed on the jacket." But that's not nearly as newsworthy, is it? And pay no attention to the banners recommending other things to buy on every single other product page on Amazon.

Streitfeld: “If you’re a monopolist, you get to be a bully,” said Richard Russo, the Pulitzer-winning novelist and Authors Guild vice president. “

“Like all repressive regimes, Amazon wants to completely control your access to books,” Sherman Alexie said in a Twitter post.

“Given AMZN’s near-monopoly position I think it’s an antitrust violation, but the U.S. antitrust regulators are broken,” Charlie Stross said, also on Twitter.

Joe sez: Yes, Streitfeld is quoting Twitter and not using this rhetoric himself. But where are the Twitter posts from the opposing viewpoint?

I can imagine Streitfeld replying: I didn't write the propaganda posters! I just hung them up where they could be read by millions of people!

Sure, Mr. Streitfeld. Way to be objective. Your piece is loaded with the hot-button words and statements like "monopolist, bully, antitrust, violation, repressive regime, and completely control your access to book", all in reference to Amazon.

Where are the critical quotes about Hachette? Where is the balance?

Let's move on to his next article.

Streitfeld: For months now, Amazon has been trying to put the screws on Hachette, the smallest of the Big Five publishers, by discouraging people from buying its printed books. Amazon’s goal: force Hachette to give it better terms on e-books.

Joe sez: That's the opening sentence. Amazon is putting the screws to the smallest of the big five. Amazon's goal is to force Hachette.

Or, in fairer words, Amazon is negotiating with a company worth ten billion dollars... a company trying to control Amazon's ability to discount ebooks.

See how the truth makes it sound a lot different than Streitfeld made it sound?

Streitfeld: If the 4,000 tweets on my two stories on the topic late last week are anything to go by, Amazon might need to worry more.

Joe sez: How many of those tweets were calling your story biased nonsense?

Maybe he needs to Google "no one I knew voted for Nixon."

Streitfeld has five quotes supporting Hachette. And 13 words from Hugh Howey, offering an opposing viewpoint.

Streitfeld: Independent bookstores broke with tradition in 2012 and decided not to sell books published by Amazon. That was their choice. And if customers chose as a result not to shop there, that was their choice. It’s a free country.

But Amazon is not saying it is dropping all Hachette books.

Joe sez: WTF?

So other bookstores can decide they don't want to sell certain titles, and that's free choice. But Amazon, which is still selling Hachette titles, is behaving worse? How can this be?

Streitfeld: Amazon wants to have it both ways, telling customers it has the book while discouraging them from buying it. This is why some Internet commentators are saying the real issue here is deception as defined by the FTC – “a representation, omission or practice that is likely to mislead the consumer acting reasonably in the circumstances, to the consumer’s detriment.”

That sounds like bait and switch, something the Federal Trade Commission frowns on as deceptive.

Joe sez: So Streitfeld is suggesting Amazon is using "bait and switch" fraud.

Did Streitfeld look up the definition of bait and switch?

However, no cause of action will exist if the purveyor is capable of actually selling the goods advertised, but aggressively pushes a competing product.

Amazon is still selling Hachette titles. Ergo this cannot be bait and switch.

And let's not even bring up that if a customer found Amazon's shipping times unacceptable, it would take ten seconds and three clicks to buy that same book from another website.

Moving along to the next Streitfeld article.

Streitfeld: “I am a big fan of Amazon and spend as much as $5,000 per year there (not just books),” Ms. Cowie, a Connecticut investor and landlord, wrote me. “But this treatment of Hachette is completely unacceptable. I called Amazon today to let them know that I will boycott them until this Hachette dispute is resolved.”

Joe sez: This entire article is about a landlord boycotting Amazon. Seven hundred words devoted to this single topic, with no mention that Amazon's approval rating has never been higher.

And this qualifies as newsworthiness? This isn't propaganda?

Onto the next one.

Streitfeld: Hachette is holding fast to the traditional publishing system that underpins modern culture.

Joe sez: Who wants Amazon to destroy modern culture? No one, so we must side with Hachette... even though there is no proof Amazon is destroying modern culture.

How things are worded matters so much, doesn't it?

Streitfeld: Authors published by the traditional houses, including Hachette, argue that their livelihood is at stake, and that the world where Amazon is the only gatekeeper would be a deeply problematic one. There have been vows of boycotts.

Joe sez: The first sentence is an appeal to pity fallacy. Their livelihood is at stake! Somebody help them!

The second sentence is just plain shitty journalism. Vows of boycotts? You mean that landlord you wrote about? She's representative of an entire "boycott Amazon" movement? Proof?

I've heard "rumors of bigfoot." Maybe I should mention that in a NYT article and give it some real credibility.

But then Streitfeld immediately lets the other side have some column inches as well, right?

Streitfeld: But Amazon is content to play the long game, as usual, and seems confident that Hachette authors will ultimately grow restive and blame the publisher.

Joe sez: So rather than quote some Amazon supporters, and mention how many author livelihoods Amazon has fostered, Streitfeld avoids the opposing viewpoint altogether.

Streitfeld: When Amazon felt threatened then by publishers demanding a different pricing system for e-books, it had two responses: It removed the “buy” buttons from one publisher, and sent a letter to the Federal Trade Commission with accusations of illegal behavior. The buttons were soon restored, but the publishers were hit by a government antitrust suit whose consequences are still being felt.

Joe sez: Sneezing Jesus with an asthma attack! Amazon "felt threatened"? You mean when five publishers illegally colluded to fix prices and force Amazon to accept the agency model? Why would Amazon feel threatened by that?

And where is the mention that Hachette lost the antitrust suit? You know, the one where Hachette was found guilty of collusion and price fixing?

Streitfeld: “I’m shocked that Amazon would do anything to fuel the speculation that once they grow big enough, authors will suffer,” wrote Hugh Howey, an author who is usually a champion of Amazon’s way of doing things.

Joe sez: Way to cherry pick, David.

Howey, like many blogging activists, is pro-author. Saying he is "usually a champion of Amazon's way of doing things" is a cute and sleazy way of calling Howey a sycophant who finally got upset with his lord and master because they did something so heinous.

Of course, anyone who read the Howey piece that Streitfeld quoted would know that isn't the case. But Streitfeld didn't link to that post. He made it seem like Howey gave him that quote directly.

Is that what good reporters do?

Moving on.

Streitfeld: So when Amazon took the rare step of explaining why it decided to hold 5,000 Hachette books hostage

Joe sez: Hostage, huh? Can Wikipedia help?

(A hostage is) someone who is seized by a criminal abductor in order to compel another party such as a relative, employer, law enforcement, or government to act, or refrain from acting, in a particular way, often under threat of serious physical harm to the hostage(s) after expiration of an ultimatum.

Such a serious, hot-button, polarizing word. I had no idea Amazon had a ticking clock ultimatum, or that Amazon was forcing Hachette authors to sell their titles on its website. I thought Amazon was using leverage during a contract negotiation--a negotiation that both parties are willingly entering into--by flexing its retail power.

But to Streitfeld, it is an actual hostage situation. Can't Hachette compel the government to send in a SEAL team to rescue all those poor hostages?

Streitfeld: “The use of its market position to purposely delay delivery of books from selected publishers in order to pressure them to accept their demands for conditions is not only a threatening sign for the book industry, but a clear affront to those who read and buy books,” wrote a group of some 880 independent booksellers and publishers, members of a loose organization that calls itself the Booksellersmeeting in protest against Amazon’s action.

Joe sez: Wait... indie bookstores are criticizing Amazon? And publishers don't like the fact that Amazon is a fierce negotiator? Amazon, who built the world's largest bookstore and invented the ereading device that the majority of readers are using?

My only question is: why wasn't this front page headline news?

Next on the Streitfeld Report: 880 bananas sign a petition accusing monkeys of "trying to eat them". Hold the presses.

And more.

Streitfeld: Amazon has been heavily criticized for using writers as pawns, although it also has its defenders.

Joe sez: And that's the only line about Amazon's defenders in this entire post. The rest of it presents a case against Amazon with no opposing views.

Balanced coverage? Really?

Streitfeld's next journalistic endeavor on this issue (Barry Eisler calls it stenography, not journalism) is simply recounting Stephen Colbert's incorrect stance. No opposing viewpoint at all. The newsworthiness of his story is that Colbert is angry with Amazon.

Why isn't it newsworthy that Colbert is wrong?

Can't this be a story about a rich and famous celebrity media personality with his own TV show who uses it to expose truths about the government and society but is actually using his platform for ill-informed, selfish purposes that are illogical?

More newsworthiness: Amazon Stops Taking Orders for Time Warner Videos.

Both Amazon and Warner declined to comment on what is simply a negotiation between two businesses. But Streitfeld managed to write 600 words about it, fanning the anti-Amazon sentiment fire he's been building.

But wait! Maybe Streitfeld actually had a reason to call this newsworthy.

Streitfeld: “Considering all the press regarding Hachette it seems strange that no one is reporting this,” one commentator wrote on the Amazon forum.

Joe sez: Now I see! An anonymous commenter on an Amazon forum wanted this reported, so the NYT devoted a whole column to it.

I can imagine Streitfeld pitching this story.

INT. NYT OFFICE, DAY

A serious looking David Streitfeld speaks to his editor, Suzanne Spector.

Streitfeld: The haven't been any developments in the Amazon/Hachette dispute in a few days. But I've got a new angle.

Spector: Do tell.

Streitfeld: Lego.

Spector: I'm not even touching you.

Streitfeld: No, not "let go". I mean The Lego Movie. Huge hit, but Amazon isn't selling any pre-orders of the movie. In fact, it isn't taking advance orders on any Warner movies.

Spector: So Amazon not selling something that isn't available is news?

Streitfeld: When you say it that way you make me sound stupid.

Spector: I'm sorry. I know you don't need help in that area.

Streitfeld: Don't you get it? Amazon is doing the same thing that they did to Hachette.

Spector: Sounds like two businesses in negotiation.

Streitfeld: It is. That's what Warner said, before declining to comment.

Spector: So what's the spin? You're all about authors being harmed by Amazon in the Hachette dispute. Are you thinking Lego Batman is being harmed by Amazon now?

Streitfeld: No. That would be silly. Lego Batman is too busy fighting Lego crime to care.

Spector: So who does care, exactly?

Streitfeld: A lone anonymous commenter on an Amazon forum.

Spector: Run it!

...

And Streitfeld's next article.

Streitfeld: For more than six months, Amazon has been trying to wring better e-book terms out of Hachette. The publisher, which is the fourth largest in the United States and whose imprints include Little Brown and Grand Central Publishing, is energetically resisting.

Joe sez: Have those reading this caught on to what Streitfeld is doing?

Amazon is trying to wring better terms. Hachette is resisting.

But all evidence points to Hachette wanting to prevent Amazon from discounting ebooks in order to control its paper oligopoly, and Amazon wanting to keep ebook prices low.

Why is Hachette above reproach, and Amazon the enemy?

The above article is about Amazon offering to compensate authors during the negotiation period. A good thing, right? It's a response to critics, and a move to help authors.

Streitfeld: The proposal “has several real benefits — to motivate us and Hachette to reach an agreement sooner rather than later and to insulate the authors,” said Russ Grandinetti, Amazon’s senior vice president for Kindle content. “It would make things better for readers, too,” he added.

But Roxana Robinson, president of the Authors Guild, dismissed the proposal.

“If Amazon wants to have a constructive conversation about this, we’re ready to have one at any time,” she said in an email. “But this seems like a short-term solution that encourages authors to take sides against their publishers. It doesn’t get authors out of the middle of this — we’re still in the middle.”

Joe sez: As I said in my last blog post, what sort of reporter wouldn't call Robinson on her blatant stupidity?

Actually, Roxana, Amazon's offer DOES get authors out of the middle of this. And authors SHOULD be taking sides against Hachette, for not only getting them into this mess, but also refusing to compensate them as Amazon offered.

But Streitfeld gives Robinson's ridiculous dismissal equal weight to Amazon's proposal. Apparently because the Authors Guild bending over for Hachette isn't newsworthy.

Streitfeld: (Robinson) added. “From our publishers we want a fairer share of e-book revenues; from Amazon we want an end to predatory practices that unfairly threaten their competitors, as well as the continued existence of the printed book.”

Joe sez: So the Authors Guild wants a fairer share of ebook revenues, but Streitfeld doesn't ask what the Guild is doing to reach that objective. Streitfeld also doesn't ask Robinson how Amazon is supposed to negotiate with Hachette without using any leverage. Or how it is Amazon's job to encourage competition. Or how or why Amazon has to ensure that the paper market continues.

This kind of Streitfeldian reporting is ridiculous. What's next?

Today Unicef trucked 25,000 pounds of supplies to Hurricane Schlomo victims in Laurelstan to help with reconstruction efforts.

Opposing this humanitarian effort is the group FuelIsEvil. President Harry Nuts said, "Unicef is using trucks that operate on fossil fuels, which is greatly impacting global warming. If we continue to support massive efforts to help those in need, we'll destroy the earth."

I can't be the only one who sees how silly that is.

Did Streitfeld try to ask any Hachette authors if perhaps they'd like to be compensated monetarily? Is that not a story? Is "Hachette Refuses to Help Its Authors" not a good headline for some reason?

Streitfeld's next article is Amazon, A Friendly Giant as Long as It's Fed.

The point of this blog post is to show that Streitfeld is a propagandist on this Amazon/Hachette dispute. He's clearly anti-Amazon.

But he isn't in this post. He's pretty even-handed, and gives roughly equal time to both sides of the issue.

I'm a blogger, not a reporter. I don't get paid for this. My personality and opinions are supposed to shine through in my posts, so it serves me no purpose to give Streitfeld props when I'm trying to excoriate him. But I will, because I try to be fair.

So nice work, David Streitfeld, on this article. Why aren't they all like that?

Streitfeld returns to anticipated form here. This Streitfeld article was so one-sided, so biased, that Eisler and I fisked it in-depth.

David Steitfeld - An Embarassment to the New York Times

We weren't the only ones that lambasted Streitfeld. Somewhere else on the internet, someone coined the phrase "whale math" to make fun of Streitfeld's ridiculous suggestion that 906 signatures is greater than 7650.

"The petition has 7,650 signatures. By comparison, a 2012 Change.org petition calling on Amazon to ban the sale of whale and dolphin meat drew over 200,000 signatures."

Streitfeld's article was front page. He devoted it almost entirely to Douglas Preston's petition, and dismissed the opposing petition with 8x as many signatories as a "rambling love letter" to Amazon.

Streitfeld recently defended his whale math to Margaret Sullivan.

When established authors band together against the largest bookseller, he says, “it’s just a great story, period.” And he says that 900 of their signatures mean much more than “a petition that’s open to anyone on the Internet.” To treat them as equal would be false equivalency, he says.

As for his own viewpoint, he says: “I am on no side here. I view my role as opening up these questions.”

Barry Eisler refuted this nonsense in his recent blog post. Go read it.

It's worth noting that one of the earmarks of propaganda is dehumanizing the enemy and creating false images.

So 900 established authors mean much more than 8600 authors and readers. Makes no difference that some of the 8600 signatories on the anti-Hachette petition were authors who outsell many of the 900 signatories. Makes no difference that the anti-Hachette petition included readers, whose opinions don't seem to matter even though the anti-Amazon petition purported to be on behalf of readers.

Instead, Streitfeld points out that more people care about dolphins than books, but somehow doesn't think that's a false equivalency.

Then he says he's "on no side here".

You dismissed a petition with whale math, Streitfeld. Of course you're taking sides.

Next came Streitfeld's Orwell pieces. Hugh Howey obliterates them here and shows Streitfeld was being purposefully disingenuous here.

Have I made my point yet? Is calling Streitfeld a propagandist really stretching it? Or is he clearly spewing propaganda? What's next? How could he possibly raise the anti-Amazon sentiment he's propagating?

Amazon Takes Muppets off the Shelf - by David Streitfeld

That's not a joke. That's an actual Streitfeld newsworthy article.

Streitfeld: Eliminating the preorder button is thus a potent weapon for Amazon. It declined to take orders for Warner Home Video for several weeks at the beginning of the summer. And it has been engaged in a pitched battle with Hachette for months, causing some of the publisher’s authors to see their sales on the site drop by half.

Joe sez: Sweet Jesus on a Cinnamon Roll! Amazon is engaged in nefarious acts of capitalism!

I would have loved to have been a fly on the wall during that pitch meeting.

INT. NYT OFFICE, DAY

A serious looking David Streitfeld speaks to his editor, Suzanne Spector.

Streitfeld: It's happening again.

Spector: What is? Obama killing people in drone attacks without the approval of Congress? Snowden and Greenwald revealing more about the NSA's illegal surveillance? Greater depth about the CIA enhanced interrogation report?

Streitfeld: Bezos is targeting Muppets.

Spector: Hot damn! You know I submitted your Lego Batman piece to the Pulitzer committee for consideration. This sounds even more newsworthy.

Streitfeld: I'm thinking we run a picture of Jeff Bezos, Photoshopped to look like Bin Laden, shooting a crying Kermit the Frog in the face.

Spector: I like it. Or maybe Fozzy being waterboarded. Or some other enhanced interrogation technique.

Streitfeld: Remember; it's okay to call it torture from now on.

Spector: Oops, yeah. Forgot.

...

Joe sez: I could go on. Streitfeld harping on Amazon's Fire Phone, covering the non-story of Authors United sending a Fed Ex to Amazon's board of directors, Amazon's super-secret Campfire, devoting a full article to the nonsense spouted by Wylie and Le Guin, Amazon's treatment of Paul Ryan...

At what point does the NYT have to admit that this is indeed anti-Amazon propaganda? 

Let's get back to the definition of "newsworthiness".

More recently, the focus similarly remains on political and local issues; however, the news mass media now comes under criticism for over-emphasis on "non-news" and "gossip" such as celebrities' personal social issues, local issues of little merit, as well as biased sensationalism of political topics such as terrorism and the economy. The dominance of celebrity and social news, the blurring of the boundary between news and reality shows and other popular culture, and the advent of citizen journalism may suggest that the nature of 'news' and news values are evolving and that traditional models of the news process are now only partially relevant.

I'll opine that's clearly what is happening in this case.

Amazon is newsworthy in that it is a big, successful corporation, and everyone wants to read dirt about celebrities. When the NYT keeps quoting anti-Amazon morons without fair time for opposing common sense, devotes inches to Amazon's negotiations that harm Legos and Muppets, and throws journalistic integrity out the window, it is behaving more like TMZ than the Grey Lady. 

Perhaps that's why the influence the NYT once had to sway opinion is diminishing. Citizen journalists--bloggers--are the ones who are truly reporting on the Amazon/Hachette dispute. Bloggers are the ones digging for truths, exposing nonsense, taking authorities to task. 

There are no good guys and bad guys in any of this. Only individuals, groups, and companies, acting out of self-interest.

But self-interest can be enlightened. While benefiting yourself, you can also benefit others.

The Authors Guild, Authors United, and Hachette benefit some people, but harm others. The few they do benefit, benefit greatly. But they harm more than they help. 

Amazon has helped more authors earn money than any other company in history. Right now it could be argued that they are harming authors (even though I think the better argument is that Hachette is the company harming authors in this dispute.) The thousands of authors having their pre-order buttons removed is still a long way from the tens of thousands of authors making money via Amazon, many who never made money before (but still not as many people as those who care about whales).

The NYT could be taking Amazon's side occasionally, and it would still sell papers. The story is still compelling when told from the opposite side. Or from both sides equally.

Instead, they have been siding with the status quo old school establishment. Hugh Howey just did a terrific post about how odd this is, compared to how the NYT reports fairly on other topics.

I suppose that why I, and many others, get our publishing news from Howey, and Eisler, and Milan, and Penn, and Gaughran, and Passive Guy, and Mayer, rather than the New York Times.

But if reporters and editors listened to Sullivan, maybe that would change.

Friday, October 03, 2014

The Publishers Guild Strikes Again!

Contrary to what some may think, I don't hate anyone.

There are certain folks in the industry whose actions I don't like. And I'm often vocal about that.

But disliking what someone does or says doesn't mean disliking the person. And disliking how an organization conducts itself doesn't mean I dislike the organization, or the members.

I simply want those members, and their organization, to stop harming authors.

So when I read the latest letter from the Authors Guild to their membership, my immediate reaction was sadness, not anger. Why don't they understand how they are harming the very authors they purport to protect and defend? Why can't they see the side they're taking is the opposite of what the majority of authors actually need?

There is some of Pournelle's Iron Law in play, of course.

There's Bookholm Syndrome.

There's Konrath's Law (folks would rather defend their beliefs to the death rather than admit they might be wrong.)

There's also self-preservation, and the ignorance it breeds. If you listen to an opposing point of view that makes sense, you must confront why you aren't acting on the point of view. So it is much easier to ignore it, or disregard it.
As Upton Sinclair said, "It is difficult to get a man to understand something, when his salary depends upon his not understanding it."

Which brings us to Amazon vs. Hachette. Those who need a primer can start reading my blog post from May 24 and just keep reading until present. I link to many relevant posts and articles about the subject.

So what did the latest Authors Guild letter say? I'll repost it here. My comments in regular font, AG ridiculousness in bold italic.

I also want to invite any member of the Authors Guild to post in the comments, or email me, and explain where I'm wrong. I don't hate you, I won't attack you, I won't censor you. My readers and I want to hear you defend yourself, or the Guild. If we can get a dialog going, we can learn from each other.

The Authors Guild’s mission, since its founding in 1912, has been to support working writers.

All working writers? Or just the upper echelon writers who kowtow to legacy publishers?

I have taken the AG to task for this numerous times (often with assistance from Barry Eisler), and we've gotten no response.

Barry and I don't do this because we enjoy shaming authority figures. We truly want the Authors Guild to actually do what it said in that opening sentence: support working writers. But not just 1% of them. All of them.

Here are some previous posts that show bad AG behavior:










Those above examples, and the many more those posts link to, show that the Authors Guild doesn't have the interests of the majority of its members at heart. It cares more about rich authors, and protecting the status quo.

The fact that no member of the Guild has responded to the many accusations that I, and other working writers, have leveled at it, is extremely troubling.

The Guild has consistently opposed Amazon’s recent and ruthless tactics of directly targeting Hachette authors, which have made these authors into helpless victims in a business dispute between two big corporations. 

For the eyerollingenth time, Amazon isn't targeting Hachette authors.

Amazon is negotiating with Hachette. Hachette wants to control the retail price of ebooks, and prevent Amazon from discounting. Hachette illegally colluded with other publishers in order to do this. 

Amazon and Hachette no longer have a contract. Amazon is under no obligation at all to continue to sell Hachette's books. It is certainly under no obligation to sell them while also giving them perks such as warehousing, pre-order buttons, and discounting. 

Can anyone at the Authors Guild, or Authors United, give me an example of how Amazon is supposed to negotiate without any leverage?

A contract involves two parties trying to get what is best for them. This is called business. It isn't targeting authors, or engaging in censorship, or boycotts, or sanctions, or disappearing authors, or any of the other nonsense that AU and AG are whining about.

Authors are indeed being harmed. But they aren't the target. Hachette is the target. Authors are collateral damage, and Amazon has tried, THREE TIMES, to compensate authors during this negotiation. But Hachette doesn't want to do that. Neither does the Authors Guild, or Authors United.

And the Authors Guild wonders why many authors call them the Publishers Guild?

These harmed authors have no contract with Amazon. Amazon doesn't owe them anything. Amazon never promised them anything.

These harmed authors have signed contracts with Hachette. Hachette is supposed to exploit the rights they bought. That's the main reason authors accepted all of those shitty contract terms. Hachette gets those rights for the life of the author plus 70 years, pays low royalties, doesn't allow authors to publish competing works, and in return authors get widespread distribution of their work to sell to as many customers as possible.

But Hachette is unable to come to terms with the biggest bookseller on the planet.

Why aren't these harmed authors angry at Hachette? They're not living up to their end of the deal. Has the Authors Guild even asked Hachette what's going on? Has Authors United?

Let me make this even easier to understand.

I sign a contract with a landscaper to mow my lawn.

The landscaper needs a lawnmower to do this. But the landscaper has been haggling with the lawnmower dealer for eight months, and still hasn't gotten a mower. And all this time, my lawn isn't being mowed.

Do I get mad at the lawnmower dealer?

Of course not. That would be ridiculous. It isn't the dealer who is preventing my lawn from being mowed. It's the landscaper's fault. He promised to cut my lawn, and it isn't getting done. He's the one I signed the contract with.

Now let's take it a step further. I live in a townhouse, so I'm part of a townhome association. It isn't only my lawn that isn't getting mowed, it's all homes in the neighborhood. The townhome association needs to do something. That's what we all pay them to do. They need to step in and fix this.

Should the association:

a) Talk to the landscaper and try to force him to settle his differences with the lawnmower dealer, so he can then cut everyone's lawns like he is contractually obligated to do.

or

b) Ask the government to force the lawnmower dealer to sell its lawnmowers to the landscaper under the terms the landscaper wants.

Why can't the Authors Guild see how ridiculous this situation is?

This action has caused thousands of writers to see a significant drop in their royalty checks. 

I have to point out, yet again, that Amazon offered to compensate authors monetarily during the negotiation period.

Why isn't the Authors Guild pressuring Hachette to accept this offer?

Quote AG prez Roxana Robinson:

“But this seems like a short-term solution that encourages authors to take sides against their publishers. It doesn’t get authors out of the middle of this — we’re still in the middle.”

Actually, Roxana, Amazon's offer DOES get authors out of the middle of this. And authors SHOULD be taking sides against Hachette, for not only getting them into this mess, but also refusing to compensate them as Amazon offered.

How could she say that with a straight face, let alone believe it? And why didn't the reporter who took that quote point out how stupid it is?

Here's another analogy to make this simpler to comprehend.

Godzilla and King Kong are duking it out on the streets of NY. Citizens are getting trampled, and their property is being destroyed.

Godzilla says, "If King Kong agrees, we'll move all the people out of harm's way, and each chip in half for all the damage we cause."

King Kong says, "Nah."

And we should blame Godzilla? Seriously?

The Authors Guild challenges this threat to the literary ecosystem, one that jeopardizes the individual livelihoods of authors.

I'll opine that the business threatening the livelihood of authors is Hachette. It falls on Hachette to make its authors' books available in as many venues as possible. It's failing to do that.

What the Authors Guild could be doing is providing lawyers to unhappy Hachette authors to get them out of their contracts, so these authors could then self-pub.

The Guild started its own initiative to invite governmental scrutiny of Amazon’s outsize market share and anticompetitive practices in the publishing industry. Last summer the Guild prepared a White Paper on Amazon’s anticompetitive conduct, circulating it to the United States Department of Justice and other government entities. As a result of our request for the initiation of an investigation of Amazon, we hosted a meeting with the DOJ in our offices on August 1 so that a group of authors could make their case directly to the government, as the Wall Street Journal reported today.

Buttery Jesus on toast, the Authors Guild was vehemently against the DOJ when they went after five major publishers for collusion against Amazon, now they expect the DOJ will finally see their side of things?

Their side of things amounts to this, a Robert A. Heinlein quote from 1939, which Marc Cabot posted on Passive Guy's blog: 

“There has grown up in the minds of certain groups in this country the notion that because a man or corporation has made a profit out of the public for a number of years, the government and the courts are charged with the duty of guaranteeing such profit in the future, even in the face of changing circumstances and contrary to public interest. This strange doctrine is not supported by statute or common law. Neither individuals nor corporations have any right to come into court and ask that the clock of history be stopped, or turned back.”

What the Authors Guild, and Authors United, want the DOJ to do is investigate Amazon for violating antitrust laws. According to the article, Publishers and authors say Amazon has too much power and needs to be reined in.

I agree Amazon has a lot of power in the book world. But is it too much power?

Amazon has stated that, "If we want a healthy reading culture, we have to work hard to be sure books actually are competitive against these other media types, and a big part of that is working hard to make books less expensive."

So it appears Amazon is using its power to lower the price of books.

Yeah, I expect the DOJ to jump all over that. Let us, for a moment, imagine the conversation that took place.

INT. DOJ OFFICE, DAY

A serious-looking DOUGLAS PRESTON, 58, is sitting at a board room table in deep discussion with a DOJ official.

Douglas Preston: Amazon wants to discount Hachette books.

DOJ: And how exactly is this bad? Aren't lower prices good?

Douglas Preston: It's hurting authors.

DOJ: Authors make less money when books sell for less?

Douglas Preston: Actually, authors make more money. Amazon wrote a letter explaining it. 

DOJ: So how are authors being hurt?

Douglas Preston: Right now, Amazon is boycotting Hachette books.

DOJ: It refuses to sell Hachette titles? Do Amazon and Hachette have a contract?

Douglas Preston: They actually don't have a contract. And Amazon is still selling Hachette books.

DOJ: So how is that a boycott?

Douglas Preston: Well, they removed pre-order buttons.

DOJ: So Amazon is refusing to sell books that aren't available?

Douglas Preston: When you say it that way, it makes me sound stupid.

DOJ: I'm not sure we can help with that.

Douglas Preston: The Amazon part?

DOJ: The you sounding stupid part.

Douglas Preston: Amazon also stopped discounting Hachette titles.

DOJ: Weren't you against Amazon discounting titles? Isn't that what this negotiation is about?

Douglas Preston: Stop it. You're confusing me.

DOJ: What exactly do you want to happen here, Mr. Preston?

Douglas Preston: I want Amazon to do what I tell them to.

DOJ: Perhaps you should become a majority stockholder in Amazon, then. Hey, here's a nifty idea--have you tried sending a Fed Ex to Amazon's Board of Directors?

...

Kidding aside, there was some interesting chatter on Passive Guy's blog about this. Is it possible the DOJ will investigate Amazon? Here are some comments I found interesting:

Randall J. Morris: Here’s how the Sherman Act defines a monopoly (which is what the DoJ will look to):

“Monopolization requires (1) monopoly power and (2) the willful acquisition or maintenance of that power as distinguished from growth or development as a consequence of a superior product, business acumen, or historic accident.”

And Wikipedia clarifies it a bit:

“Section 2 of the Act forbade monopoly. In Section 2 cases, the court has, again on its own initiative, drawn a distinction between coercive and innocent monopoly. The act is not meant to punish businesses that come to dominate their market passively or on their own merit, only those that intentionally dominate the market through misconduct, which generally consists of conspiratorial conduct of the kind forbidden by Section 1 of the Sherman Act, or Section 3 of the Clayton Act.”

I think Amazon falls into the category of dominating the market based on their own merit.

Nirmala: The word monopoly generally refers to suppliers not retailers. But there is a word for a retailer with unusually large market power or “buyer power” as it is called: monopsony.

DEFINITION of ‘Monopsony’: A market similar to a monopoly except that a large buyer not seller controls a large proportion of the market and drives the prices down. Sometimes referred to as the buyer’s monopoly.

I found this article (from the Financial Times) which suggests that Amazon does not have much to worry about:

“There lies Amazon’s advantage – it need not form a cartel to squeeze its suppliers because it is already large. With a 30 per cent share of the physical book market in the US and more than 60 per cent of ebooks, it clearly has market power in the antitrust sense. But there has never been a case in US competition law of a single company being declared an illegal monopsonist.

“In the US, the simple use by one company of monopsony power to extract lower prices from suppliers is not illegal. There is general intuition that buyer power means lower prices and lower prices are good,” says Jonathan Jacobson, an antitrust lawyer at Wilson, Sonsini, Goodrich & Rosati in New York.”

Nirmala: Here is another longer exploration of monopsony and anti-trust law.

I am not a lawyer (although I did stay at a Holiday Inn Express last night) but one thing that stood out in the above link was it suggests that while it is hard to prove harm from a monopsony consisting of one large company, that a collusive monopsony or ogliopsony (a group of buyers that control the market) is by definition illegal as a form of horizontal price fixing.

Now the publishers have already settled the charges that they acted illegally by colluding as suppliers to fix prices. It seems to me that they might also be guilty of setting prices illegally as buyers by colluding to set the royalty rates given to authors at their current low rates. As others have noted, the AG and AU may be opening a can of worms for the publishers by inviting more DOJ examination of the publishing industry.

Joe sez: Big 6 (now Big 5) publishing contracts have been notoriously one-sided in favor of the publishers for decades, and I think a smart lawyer would be able to make a case that they are unconscionable and therefore null and void.

Besides being one-sided, these contracts are all remarkably similar. Same lockstep royalties. Same lousy terms. And before Amazon, authors had no choice, because the publishing oligopoly controlled paper distribution. It was accept the terms or don't get your book into stores. If publishers also fit the definition of an oligopsony, and the DOJ becomes interested in exploring this, the Authors Guild and Authors United may be unwittingly bringing about the downfall of the very industry they're trying to protect.

But let's get back to the AG letter...

The Guild has been working closely with the grassroots group Authors United—founded by Authors Guild Council Member Douglas Preston—which will be making another request to the Department of Justice to investigate Amazon for potential antitrust violations.

So the Guild supports a petition with 1000 signatures, while ignoring the opposing petition with over 8600 signatures.

This is your Authors Guild. Fighting for the privileged status quo at the expense of the unwashed masses.

I've wondered before it the Authors Guild and Authors United know that they're full of hooey, and are actually doing these silly things to get media attention and try to turn public sentiment against Amazon. If that's the case, it isn't working. Amazon's customer approval rating is high, and more and more authors are figuring out that this is all pretty silly.

Our mission is to protect and support working writers. When a retailer, which sells close to half the books in the country, deliberately suppresses the works of certain authors, those authors are harmed, and we speak out. 

They speak out and oppose retailers who harm authors? Where was the Authors Guild when:

Bookstores removed erotica?

PayPal withdrew its services from erotica?

B&N manipulated erotica bestseller rankings?

Bookstores boycotted Amazon published titles?

Amazon removed reviews?

You know what, Authors Guild? All you have to say is, "The system, as it stands, earns some of us a lot of money. So we're going to support the system."

I can't argue with that. Hell, I'd respect that.

But the "support working writers" line is worthy of public ridicule and disdain.

Also, since you apparently don't know it, here's the definition of the word "suppress": verb (used with object)
  1. to put an end to the activities of (a person, body of persons, etc.):to suppress the Communist and certain left-leaning parties.
  2. to do away with by or as by authority; abolish; stop (a practice, custom, etc.).
  3. to keep in or repress (a feeling, smile, groan, etc.).
  4. to withhold from disclosure or publication (truth, evidence, a book, names, etc.).
  5. to stop or arrest (a flow, hemorrhage, cough, etc.).
  6. to vanquish or subdue (a revolt, rebellion, etc.); quell; crush.

Amazon hasn't put an end to the work of certain authors. They haven't done away with it. They haven't repressed it. They haven't withheld it. They haven't stopped it. They haven't vanquished it.

Amazon doesn't have a flotilla of war ships around Hachette's warehouse, preventing books from reaching the outside world.

Amazon hasn't even stopped selling Hachette titles, even though there is no contract that requires it to do so.

And you went to the DOJ with this? Really? When you left, did you hear giggling behind you?

We will continue to oppose any business tactics, from publishers or retailers, that interfere with working writers’ ability to present their products in a fair marketplace and to flourish within their chosen field. 

Continue to oppose tactics from publishers?

Why aren't you opposing Hachette's tactics? Hachette is reportedly delaying negotiations. Hachette is refusing to compensate authors. Have you even been in contact with Hachette? Do you even know what terms Hachette and Amazon are fighting about?

Our goal is to ensure that the markets for books and ideas remain both vigorous and free.

Okay, let me get this straight. You want to ensure the book market remains free by forcing a retailer to sell books according to your rules.

Would you also like to ensure freedom of speech by forcing people to say what you want them to say?

How about you ensure freedom of religion by making everyone go to the church of your choosing?

How can a guild made up of authors write nonsense like this?

That's a question I'd love to have answered. The ball is in your court, Authors Guild. My blog is yours.

Defend yourself.

Tuesday, September 30, 2014

Lee Child Responds

After sending me an email to share why he signed the Authors United petition, and spending some time engaging with people in the comments, Lee Child has continued to generously share his thoughts and has responded to some of the questions I had.

I'll run it in its entirety, then provide my answers.

Lee: Joe, here’s my response to the points you made that interest me.

I think the first part of your reply (about relative success) can be summed up by quoting your words “That’s luck … the legacy industry never handed me the keys to the kingdom like they did with you.”

That’s a little self-pitying, don’t you think?  Poor Joe!  And it doesn’t hold up under analysis.  We both started from the same place, albeit a few years apart, but as it happens those particular years saw no change in the model. We both had the same small print run in debut hardcover.  We both had the same extremely limited distribution.  We both had the same non-existent marketing support.  We were first-year clones of each other.  We were typical throw-it-at-the-wall-and-see-if-it-sticks gambits.

The same was pretty much true of our second and third years, too. Meanwhile, of course, we both went to work, trying to get ahead, by writing the best books we could, and promoting them as effectively as possible.

Now, I’m the first to acknowledge the existential luck I had in life.  I was born white, male, middle class, tall, healthy, not visibly deformed, in a stable postwar Western democracy at peace, with a welfare state and free education. I think my own little demographic was literally the luckiest ever in all of human history.

But you certainly shared that luck.  Not quite as tall, maybe, but certainly better looking … not as extensive a welfare state, but certainly a far more prosperous society.  And so on.  We started equal, and we made choices. Yours were poor.  You threw immense energy into misguided – and actually damaging – stratagems.  You didn’t understand the game.  Which is not just hindsight.  I remember trying to dissuade you, as a friend, in a conference hotel somewhere long ago.  You ignored me, and were eventually dropped, while I stayed in the game.

No one “handed” me a key, and no one withheld one from you.  Instead, a bean counter sat down and figured he could make more money out of me than you.  It was that simple.

And in fact you were then very lucky – a new platform was invented that suited your skill set perfectly.  I’m a close observer of the whole self-publishing scene (and I have read more than 600 self-published books) and I think your weaknesses under the old model have been matched by exceptional strengths perfectly attuned to the new model.

I think you should celebrate that, and I think you should stop letting traditional publishing live rent-free in your head.  I think all self-publishers should.  Because all these endless screechy blogs make you look whiny, not us.  “I coulda been a contender!”  Get over it already.  Move on.  Don’t perpetuate the “bitter reject” meme.

Later you said, “I believe you overestimate the value of Hachette’s catalog to Amazon.”  No, I don’t.  I said I think Amazon overestimates the value of Hachette’s catalog to Amazon.  My point was quite clear – Amazon won’t dump Hachette because Amazon’s own internal credo is built on being the everything store.  Which dilutes its negotiating power.  All negotiations are built on a willingness to walk away.  Amazon isn’t willing.

Later you mention print disappearing – which it might, and which I would regret, because I think it would happen without a positive desire on the part of customers.  People like print.  If it goes, it will have gone because of retail economics, not lack of appeal.  Which sounds confused, but that’s an accurate analysis.  Mass market is dying not because there’s diminished demand, but because there isn’t enough margin in it.  “I can make more out of broccoli than books,” one retailer said.  Will all readers switch to e-readers?  Not all, I think.  Sadly reading’s appeal is fragile now, and many folks will quit and find alternatives.  Or not – I’ll be particularly sad about poor people.  Any e-reading ecosystem is entirely inaccessible unless you have a working credit card or a viable bank account for PayPal – which poor people don’t.  They love used paperbacks – all worn and furry, found, traded, borrowed, bought for fifty cents.  But hey.  This is the modern world.

As for the rest … I guess I have one question.  One thing few people know about me is I love ironing.  I just moved, which was a great excuse for a new ironing board.  I checked Amazon, naturally, who had boards ranging from $18 all the way to $220.  Has Amazon approached the expensive manufacturer and said, “C’mon, pal, America needs cheaper ironing boards!  Think of the children!”  No, it said, “Sure, throw it up on the site and we’ll see if anyone’s interested.  We trust our customers to decide for themselves.”

Another interest is audio.  Amazon has low-powered two-channel audio amplifiers listed from $24 to $24,000.  Did it approach the expensive manufacturer and say, “C’mon, pal, America needs cheaper amplifiers!  Think of the puppies!”  No, it said, “Sure, throw it up on the site and we’ll see if anyone’s interested.  We trust our customers to decide for themselves.”

Can you explain in detail why the e-book market shouldn’t operate the same way as the ironing board market or the amplifier market?  Why do e-book buyers – uniquely – need Nanny Amazon to save them from deciding for themselves?  Are books special?  Are they different?  Or are there others factors in play?

Joe: Thanks again for stopping by, Lee. Your thoughts are smart and refreshing. I'll respond point by point.

Lee: I think the first part of your reply (about relative success) can be summed up by quoting your words “That’s luck … the legacy industry never handed me the keys to the kingdom like they did with you.”

That’s a little self-pitying, don’t you think?  Poor Joe!  

Joe: I find it empowering. My daddy didn't buy me a car. I went out and earned my own.

Ribbing aside, you had advantages that I didn't, but that's life. I'm pleased with what I've been able to accomplish, and don't lament what I never had.  

Lee: And it doesn’t hold up under analysis.  We both started from the same place, albeit a few years apart, but as it happens those particular years saw no change in the model.  We both had the same small print run in debut hardcover.  We both had the same extremely limited distribution.  We both had the same non-existent marketing support.  We were first-year clones of each other.  We were typical throw-it-at-the-wall-and-see-if-it-sticks gambits.

Joe: I'm pretty sure your advance and print run were higher than mine. Didn't Stephen King review your first book in Entertainment Weekly? Didn't you also debut in the UK? You already had several advantages out of the gate.

Lee: The same was pretty much true of our second and third years, too.  Meanwhile, of course, we both went to work, trying to get ahead, by writing the best books we could, and promoting them as effectively as possible.

Joe: Right after my third book came out, my publisher dropped their entire mystery line. Not only my series, but others as well. This was after I signed a deal for three more books.

My first three novels never got coop, never got discounting, never got worldwide distribution. I went on book tours for #2 and #3, which I'll get to in a moment. But we were very far from starting at the same place.

Lee: Now, I’m the first to acknowledge the existential luck I had in life.  I was born white, male, middle class, tall, healthy, not visibly deformed, in a stable postwar Western democracy at peace, with a welfare state and free education.  I think my own little demographic was literally the luckiest ever in all of human history.

But you certainly shared that luck.  Not quite as tall, maybe, but certainly better looking … not as extensive a welfare state, but certainly a far more prosperous society.  And so on.  

Joe: Agreed, except on the better looking part. You've got a suave British Secret Agent look about you, I get mistaken for an elderly Jack Black.

I grew up in America a privileged white male in an affluent family. But as I neared adulthood, our family lost everything. While in college, and for years later, I was poor. I wrote my first novel in 1992, in a basement apartment in the Chicago suburbs, and often had to choose between eating and turning on the heat. (On a particularly cold winter night went to the bathroom and couldn't shower because my shampoo bottle had frozen).

It was during a pretty serious rescission, and writing was something I squeezed in between any job I could get, some white collar, some blue.

This taught me a lot. First, to not be afraid of hard work. Second, to not give up.

I was lucky, but at lot of the time it didn't feel like it. I was, literally at times, a starving artist.

Lee: We started equal, and we made choices. Yours were poor. You threw immense energy into misguided – and actually damaging – stratagems. You didn’t understand the game. Which is not just hindsight. I remember trying to dissuade you, as a friend, in a conference hotel somewhere long ago. You ignored me, and were eventually dropped, while I stayed in the game.

Joe: My stratagems--learning how to self-promote and signing in as many bookstores as possible--were the reason my books went into multiple printings and earned out their modest advances ($110,000 for the first three novels, $125,000 for the next three novels). Here's a guide a wrote in 2006 t about all the work you didn't have to do.

Your publishing experience was a lot different than mine.

My efforts, the ones you call damaging, kept food on my table and allowed me to stay a fulltime writer, rather than a writer with a day job. This is what 99% of legacy authors must do; hustle, or work part time (or full time) at something else.

Lee: No one “handed” me a key, and no one withheld one from you.  Instead, a bean counter sat down and figured he could make more money out of me than you.  It was that simple.

Joe: That's called luck, Lee. Your bean counter gave you a break. Mine axed the mystery line, even as my sales were growing.

It wasn't a quality issue. It wasn't because your books were better.

Before I self-pubbed, I had less than 500 reviews on Amazon, all of my titles combined. I wasn't being read, because I wasn't easy to find.

Now I have 13,000 reviews, averaging four stars. Not many authors, no matter how they publish, have over 1000 reviews on a single title. You do. So do other monster bestsellers. So do I.

In the comments you mentioned:

I remember meeting Dick Francis early on and learning a lot from him. In some ways he was the pioneer of the regular-as-clockwork, book-a-year paradigm. How much sense would it have made for me to say, "Oh, you just got lucky, so I'm going to ignore you"?

Joe: Dick Francis is the perfect counterexample to my experience. His publisher carried him for over ten years (was it twenty?) before he had a breakout hit. Your publisher also carried you (and I bet you were getting coop and discounting early on in both the US and UK, along with reviews and ads and a slew of others things I didn't get.)

For my first book, I got some minor support from my publisher. They took me to BEA, introduced me to many mystery bookstore buyers. They printed up 10,000 Whiskey Sour coasters with my book cover on them. But they refused to let me do book signings, because that cost coop money and they didn't feel giving a bookstore $25 would result in enough debut hardcover sales to cover that meager cost.

Since I wasn't allowed to tour, I popped into bookstores and signed stock, then handsold that stock until it was gone. When the store restocked, in larger numbers, I did it again.

To counter that I spent 8 hours in a Waldenbooks and handsold 100 hardcovers at $23.95 a pop. During the holiday season, I did this every day, at every bookstore within driving distance. From Thanksgiving to Xmas, for several years.

And as a result, I sold more books than anyone expected.

For Book #2, sensing they could enhance my efforts, my publisher arranged for a West Coast tour, comprising of 7 events over ten days. Besides the official signings, I also signed stock at 100 more stores. I also mailed out 6500 letters to libraries, each with a signed coaster, telling them about my books.

Since I wasn't getting big distribution or discounting or coop space, I enlisted booksellers to help me, which meant meeting as many as I could, signing stock, and explaining who I was and what my books were about.

This also circumvented the dreaded return system. Booksellers were less likely to return signed books, increasing my shelf life. Booksellers I met were more likely to order more books and handsell them. And bookstore algorithms (I believe B&N called it "modeling") would automatically order new copies of books that sold well.

For book #3, I signed at over 500 stores during a single summer.

Then my publisher's mystery line vanished.

For book #4, my publisher gave me ZERO support, even though my sales had been rising. No touring, no marketing. They screwed up the drop date of my launch, and didn't care. And my hardcover still went into a second printing.

Books #5 and #6, also effectively orphaned, weren't even submitted to the usual reviewers. For my last book, Borders couldn't even order it because of some colossal distributor screw-up, and they were my biggest supporter (I got to speak at a Borders regional sales meeting--something I set up, not something my daddy set up for me).

The result of my efforts; I earned out $235,000 in royalties, and all of my books had multiple printings.

But no one wanted to pick up a series in situ. So I wound up selling a horror novel, AFRAID, under the pen name Jack Kilborn, for a $20k advance. 

It's nice that you get to write about the same character in the same genre. Some of us had to diversify in order to survive.

I visited 200 bookstores to support the release, and did one of the first author blog tours. I earned out that advance in a month. But then Hachette refused to publish my follow-up novel because the editor didn't like it (it was a two book deal). I wrote a third book for them, and they wanted major changes.

I told them to piss off. But I'm getting ahead of myself.

Lee: And in fact you were then very lucky – a new platform was invented that suited your skill set perfectly.  I’m a close observer of the whole self-publishing scene (and I have read more than 600 self-published books) and I think your weaknesses under the old model have been matched by exceptional strengths perfectly attuned to the new model.

Joe: What weaknesses? You mentioned them, but didn't point them out. I feel I was lucky to land two deals, and unlucky with how they turned out. 

I also did wind up becoming my own worst enemy, because when Kindle was invented I had IPs earning steady money for my publishers, and they didn't want to give me those rights back. I had to fight hard for them. 

Those books Hachette didn't want have earned me hundreds of thousands of dollars.

That series Hyperion didn't want to continue has earned me a million.

And you still want to insist my publisher gave me the same shot that yours gave you? If that's the case, you need to quit your publisher right now, because your sales will go up 1000% like mine did. :D

Lee: I think you should celebrate that, and I think you should stop letting traditional publishing live rent-free in your head.  I think all self-publishers should.  Because all these endless screechy blogs make you look whiny, not us.  “I coulda been a contender!”  Get over it already.  Move on.  Don’t perpetuate the “bitter reject” meme.

Joe:  Even if I had been given the same treatment you had, and experienced great success, I'm still pretty sure I wouldn't be siding with Authors United.

I believe all newbie writers should read this blog post, to see both sides. Your experience is unique, mine is common. The majority of legacy writers get excoriated by the legacy system.

I was, however, very lucky that Amazon invented the Kindle, and that I had a backlist of rejected titles that put me in a perfect position to take advantage of it.

That's how well your system works. I bought my house and two cars for cash, with books that the Big 6 were convinced wouldn't sell. I'm talking about my rejected novels, not the ones that were legacy pubbed.

The only time I mention "I coulda been a contender" is when someone says they earned their success through hard work and talent.

C'mon, Lee. You know luck plays a huge part. You got a lot luckier than I ever did, so why not acknowledge that? You've even mentioned luck before:

"To get as successful as I have gotten as a writer, it's like winning the lottery the same day that you get hit by lightning twice. It's staggeringly unlikely. So I'm unbelievably fortunate." - Lee Child

I can understand the "hit by lightning" part. Circumstances beyond my control ruined two of my publishing deals. In my case, the luck I had was bad.

But my luck was still greater than thousands of other legacy authors, who sold 1/10 of what I did when I was with Hyperion and Hachette. And I never thought I was better, or more deserving, than any of them.

Lee: Later you said, “I believe you overestimate the value of Hachette’s catalog to Amazon.”  No, I don’t.  I said I think Amazon overestimates the value of Hachette’s catalog to Amazon.  My point was quite clear – Amazon won’t dump Hachette because Amazon’s own internal credo is built on being the everything store.  Which dilutes its negotiating power.  All negotiations are built on a willingness to walk away.  Amazon isn’t willing.

Joe: And yet Amazon has zero problem removing pre-order buttons and discounts. This runs counter to your statement. 

Amazon can still be the everything store without giving into Hachette's demands. It's doing that very thing right now. And Amazon readers don't care. Since this dispute began, Amazon's reputation has gotten even better. Its approval rating has gone up, and it has claimed the number 1 spot in customer reputation. 

Amazon doesn't need to walk away. They still sell Hachette's books, and other Big 5 publisher titles, while also selling 500,000 exclusive titles.

Hachette's sales have gone down. I doubt Amazon even noticed a blip. They may be selling fewer Hachette titles, but they're making more per title because they aren't discounting, as well as selling titles in lieu of Hachette titles. This Hachette book takes 3 weeks to ship? I'll just buy a different book that ships overnight. 

And think of all the warehouse space they're saving. :)

Lee: Later you mention print disappearing – which it might, and which I would regret, because I think it would happen without a positive desire on the part of customers.  People like print.  If it goes, it will have gone because of retail economics, not lack of appeal.  Which sounds confused, but that’s an accurate analysis.  Mass market is dying not because there’s diminished demand, but because there isn’t enough margin in it.  “I can make more out of broccoli than books,” one retailer said.  Will all readers switch to e-readers?  Not all, I think.  Sadly reading’s appeal is fragile now, and many folks will quit and find alternatives.  Or not – I’ll be particularly sad about poor people.  Any e-reading ecosystem is entirely inaccessible unless you have a working credit card or a viable bank account for PayPal – which poor people don’t.  They love used paperbacks – all worn and furry, found, traded, borrowed, bought for fifty cents.  But hey.  This is the modern world.

Joe: Print won't disappear. It will become a subsidiary right, which I blogged about four and a half years ago.

It's nice that you feel bad for the poor. Thankfully, even the poor have access to computers and smart phones, and many ebooks are a lot cheaper than used paperbacks. You may have heard that there are also millions of free ebooks. 

As for people liking print, this is a tired old meme that I debunked years ago. 

Lee: As for the rest … I guess I have one question.  One thing few people know about me is I love ironing.  I just moved, which was a great excuse for a new ironing board.  I checked Amazon, naturally, who had boards ranging from $18 all the way to $220.  Has Amazon approached the expensive manufacturer and said, “C’mon, pal, America needs cheaper ironing boards!  Think of the children!”  No, it said, “Sure, throw it up on the site and we’ll see if anyone’s interested.  We trust our customers to decide for themselves.”

Another interest is audio.  Amazon has low-powered two-channel audio amplifiers listed from $24 to $24,000.  Did it approach the expensive manufacturer and say, “C’mon, pal, America needs cheaper amplifiers!  Think of the puppies!”  No, it said, “Sure, throw it up on the site and we’ll see if anyone’s interested.  We trust our customers to decide for themselves.”

Can you explain in detail why the e-book market shouldn’t operate the same way as the ironing board market or the amplifier market?  Why do e-book buyers – uniquely – need Nanny Amazon to save them from deciding for themselves?  Are books special?  Are they different?  Or are there others factors in play?

Joe: Lee, this is a great comparison. You did a bit of chest thumping in both of these posts, and I went on the defensive. I'm happy you did that, because it shakes things up a bit and makes for an interesting read.

But the end of your previous post, where you spoke about your concern that Amazon becomes the only publisher left, is a valid point and could have been brought to the forefront.

You make another valid point here. Are books different from other markets where prices diverge?

I'll opine that books don't have as wide a range of prices, like an amplifier or an ironing board, because their components all cost about the same. You don't expect a Bentley to cost the same as a Hyundai. The Rolls is a better car, made of better materials.

A Lee Child hardcover costs about as much to print as a JA Konrath hardcover (actually, mine was more expensive because you had much larger print runs).

You were paid more, and the publisher certainly wants to recoup as much of that as possible. Since your brand is strong, you're able to move a lot of ebooks at $12.99.

I'm fine with that, and good for you. It does go against your earlier point about feeling bad for the poor people who can't buy expensive books, but I do believe there is a market for $12.99 ebooks, or even $29.99 ebooks.

That's not the problem I have. 

The problem I have is authors like you, right now, and groups like the Authors Guild and Authors United, are fueling the belief that Lee Child sells well at $12.99, therefor Joe Blow can sell well at $12.99 if he signs with the Big 5, too.

That is far from the truth. 

Yes, high ebook prices work for a few handfuls of bestsellers. But they kill the careers of midlisters stuck in shitty legacy contracts.

My sales went up 1000% once I got my rights back from my publishers. How many midlist authors are being held hostage in a similar way, just so publishers can maintain control of the paper oligopoly that makes them and a handful of authors like you amazingly rich?

You're thriving, but thousands of others are withering.

Even without Amazon discounts, Doug Preston's latest Kindle thriller is ranked at #861 and priced at $12.99. He's probably not recouping his huge advance, but he's doing okay. If all he had were those sales, he could make a living.

In contrast, The Three by Sarah Lotz, a new Hachette release, is also $12.99 and ranked #119,551. Her hardcover is in the 200,000s. How is she going to earn her advance out? Make a living? Put food on the table? Hachette loves the book enough to promote it on its website as a lead title. But is it getting her book into Target department stores? I looked, didn't see it. I did see yours and Doug's books, though.

I don't mean to pick on Sarah, or put her on the spot. I don't know her, she was just the first debut Hachette author I found when I went looking. I did notice she didn't sign your little Authors United petition (I say "little" when comparing it to the petition Hugh and I did with 8x as many signatures).

Amazon offered, three separate times, to compensate authors who were being harmed by this negotiation. I bet Sarah would benefit from that compensation. So would hundreds of other authors. Where was AU? Hint: they were immediately rejecting the proposals, as was Hachette.

These are the folks you've chosen to side with.

Authors signing with big publishers not only have to contend with those publishers pricing their ebooks as luxury items, failing to get them into bookstores and other paper outlets (especially with coop), they also can wind up as collateral damage because their publisher refuses to negotiate with the biggest bookseller on the planet.

I know you said that writers should make hay when the sun is shining, and self-publish. Good, smart advice. But that is counter to you supporting Hachette in this dispute.

You're sending out the message that Amazon--the only competition that the Big 5 ever had and the company that has allowed more authors to make money than any other time in history--is the bad guy and is going to hurt authors. You're also sending out the message that high ebook prices are okay, when they're only okay for a small minority of major bestsellers. 

Right now, the authors being hurt are those stuck in the middle of this negotiation--and Amazon has tried to take those authors out of the line of fire three times. Hachette has not.

Authors United, in their ridiculous and oft-repeated assertion that they aren't taking sides, is making those Hachette authors suffer even more. They should be pressuring their own publisher to negotiate (because, you know, that's who they have contracts with, not Amazon). But AFAIK they haven't even contacted Hachette.

All the biased media coverage is perpetuating a bunch of lies and nonsense. And that's harmful.

To your credit, you haven't perpetuated any nonsense here. You came in guns blazing, and I like that. We disagree on the luck factor, and that's fine. And you made two very good points in these posts.

Why the hell isn't AU making those points?

If you spoke for AU, and used the comparisons and rhetoric you used on my blog, I wouldn't have much to disagree with. I don't want Amazon to rule the world. I believe ebook pricing is elastic and everyone's sweet spot (where unit sales and profits peak) is different. We're not far apart on those issues.

But while this system has worked extraordinarily well for you, it screwed me. And it has screwed thousands of others.

That's why I continue to write this blog. So authors don't have to go through what I went through.

That isn't whining, Lee. That's activism. And I need to point these things out, repeatedly, for new authors who are learning about these topics for the very first time. This is A Newbie's Guide to Publishing, not an Insider's Guide for Pros.

It's unlikely that anyone reading this will ever attain the level of success you've had. Encouraging writers to follow your path is like encouraging toddlers to climb Mount Everest. 

In contrast, thousands of writers have followed my path. Some have succeeded well beyond me. Others are making money for the very first time.

As doctors know, "First do no harm."

All of the one-sided media coverage is harmful. 

Large publishers are harmful.

Being ill-informed is harmful.

Authors United is harmful.

Amazon may be harmful sometime in the future, but right now it is doing good by the vast majority of authors who self-publish. I just got a nice bottle of scotch and a shadowbox in the mail today from Amazon, because my Jack Daniels novel, Stirred, has sold 100,000 copies.

That's 100,000 copies without appearing in brick and mortar bookstores, because they boycott Amazon books.

That's 100,000 copies that could have been through Hyperion, but they missed the boat.

100,000 copies is nothing to you. But to a guy who knows how hard it is to handsell 100 hardcovers, one at a time, over an eight hour period in a mall bookstore, that number amazes me.

All authors work hard. Many authors are damn talented. 

Very few will get the breaks you got. And very few will get the breaks I got.

But my dream is more attainable for the masses than yours is. And positioning yourself against a company, Amazon, that makes those dreams possible, while endorsing publishers that exploit and harm the careers and pocketbooks of the majority of authors they work with, saddens me. Especially since anyone looking at the situation can easily see that Authors United is very much out to protect the rich and privileged at the expense of the poor and unlucky.

Thanks again for your thoughts on this. You're always welcome here, and it's a pleasure to have someone with a much different perspective than mine voice their opinion.

I also asked Barry Eisler to chime in (even though he and I vehemently disagree about airline seats) and he emailed me:

Barry: Hi Lee, you mentioned ironing boards and amplifiers as products that Amazon allows suppliers to price as they like, knowing some people will prefer the high-end items and others the low-end. In this system, no one is being denied access to ironing boards etc because low-priced alternatives are plentiful. And you asked, Why not just do the same for books? I think this is a great question and a great way to frame the issue — by far the best presentation I’ve seen on the topic yet from anyone affiliated with Authors United. So thank you for that.

For the most part, I agree. We already live in a world where there are more low-priced and probably even free books (not to mention library access) than any one person could read in a lifetime. So if some readers can’t afford, or don’t want to spend the money on, what we might think of as the luxury end of the book market, it’s not exactly a national tragedy.

I wouldn't want to go too far with this argument; I think reading is an important public good and in general I’m in favor of lower prices, more choice, and easier access for everyone, and therefore I tend to favor the business model that’s built to accomplish those aims rather than the one that’s built to impede them. But I’m also in favor of people having the freedom to price their goods as they like. There’s a balance in there somewhere, and maybe we fall to slightly different sides of it, or we have somewhat different views of the best way those possibly competing interests can be reconciled. Thinking about your points, I had the sense that our views might not be so different.

But this is what gets me. Why is this the first time anyone affiliated with Authors United has made an argument in such a cogent, no-bullshit, non-propagandistic way?

Just today, the New York Times ran another puff piece quoting new Authors United member Ursula K. Leguin saying, "We’re talking about censorship: deliberately making a book hard or impossible to get, ‘disappearing’ an author… Governments use censorship for moral and political ends, justifiable or not. Amazon is using censorship to gain total market control so they can dictate to publishers what they can publish, to authors what they can write, to readers what they can buy.”

And Andrew Wylie, who’s pitching all his clients to join Authors United, is quoted as saying, “If Amazon is not stopped, we are facing the end of literary culture in America.”

Not to mention all the existing rhetoric from your cohorts about books being “sanctioned,” and “boycotted,” about “We’re not taking sides,” etc.

Lee… do you really believe any of that craziness? If not, why are you lending your name to it?

If Authors United were as thoughtful and honest as you were in the thoughts I’m addressing here, l’d probably have written a blog post or two analyzing our different visions of the best system for serving readers and authors and that would have been the end of it. But instead what they peddle is overheated rhetoric, distortions, and propaganda. All of which we might loosely classify as “bullshit,” and all of which is what concerns me so much about the effect the organization is likely to have.

Because as I’ve said many times: I don’t care what choices authors make for themselves; I care that they can make those choices based on accurate information. I think it’s great that for the first time there are competing systems within publishing. What’s disturbing is when one of those systems peddles disinformation as a way of attracting new entrants — and this is the essence of what Authors United is part of. For lots more on this, here’s a post Joe and I did earlier this year called Publishing is Lottery/Publishing is a Carny Game.

http://jakonrath.blogspot.com/2014/02/eisler-publishing-is-lottery-konrath.html

If Authors United is on the level, why can’t they take a straight-up position, as you have? Why all the distortions and bullshit?

I don’t know. Maybe it’s a rhetorical question. But as long as the organization continues to present itself as propagandistically as it does, I hope people will keep calling it out. I wish you would, too.