Daring to Cut Off Amazon – US Business News – CNBC
The Educational Development Corporation, saying it was fed up with Amazon’s scorched-earth tactics, announced at the end of February that it would remove all its titles from the retailer’s virtual shelves. That eliminated at a stroke $1.5 million in annual sales, a move that could be a significant hit to the 46-year-old EDC’s bottom line.
“Amazon is squeezing everyone out of business,” said Randall White, EDC’s chief executive. “I don’t like that. They’re a predator. We’re better off without them.”
It is an unequal contest. EDC has 77 employees, no-frill offices on an industrial strip here and a stock-market valuation of $18 million — hardly a threat to Amazon, [AMZN 188.17 2.67 +1.44% ] a Wall Street darling worth $86 billion. But Mr. White’s bold move to take his 1,800 children’s books away from the greatest retailing success of the Internet era is more evidence of the extraordinary tumult within the book world over one simple question: who gets to decide how much a book costs?
The Justice Department last week sued five major publishers and Apple [AAPL 589.45 9.32 +1.61% ] on price-fixing charges, simultaneously settling with three of the houses. The publishers say they were not illegally colluding but simply taking advantage of a new device platform — Apple’s iPad — to sell their e-books in a different way, where they controlled the prices.
The publishers wanted to stop Amazon from using what one of them called “the wretched $9.99 price point,” according to court papers. Selling e-books so cheaply, they feared, would solidify Amazon’s robust grip on the business while simultaneously building a low-price mind-set among consumers that could prove ruinous to other bookstores and the publishers themselves.
Strange Random Price Quote:
“I know the price of success: dedication, hard work, and an unremitting devotion to the things you want to see happen” – Frank Lloyd Wright
- Amazon’s E-Book Pricing a Constant Thorn for Publishers (nytimes.com)
- Did Apple Save Us From the Clutches of Amazon.com? (fool.com)
- Kids’ books publisher cuts off Amazon (bizjournals.com)
- What Apple’s Ebook Fiasco Means for Amazon and the Book Business – Mashable (mashable.com)
- DOJ Should Have Gone After Amazon, Not Apple (newser.com)
- David versus Goliath: Children’s book publisher pulls its titles from Amazon and what it means for you (digitaltrends.com)
- E-book lawsuit pressures publishers, boosts Amazon (marketday.msnbc.msn.com)
- DOJ vs epublishing link dump (tobiasbuckell.com)
Posted on April 17, 2012, in Article and tagged Amazon, Amazon.com, Apple, Frank Lloyd Wright, IPad, Publishing, United States Department of Justice, Wall Street, White. Bookmark the permalink. Leave a comment.