Amazon plays hardball on Kindle ebook sales

Online retail giant Amazon is reportedly threatening to cease selling some publishers' titles unless they agree to a detailed list of concessions related to Kindle ebook sales and pricing. Citing two industry sources with direct knowledge of the negotiations, The New York Times reports Amazon has agreed in principle to allow publishers to set their own prices on ebooks for sale through its Kindle storefront, similar to deals Apple has inked with publishers marketing their titles through its forthcoming iBookstore; however, Amazon is also demanding that publishers sign three-year contracts guaranteeing that no competitor will get lower prices or more favorable terms. The NYT adds that publishers are balking at the Amazon contract, declining to lock themselves into three-year deals given the rapid evolution of the ebook segment. An Amazon spokesperson declined to comment on the talks.

According to The New York Times, Amazon's Kindle platform currently controls 90 percent of the U.S. ebook market, in part because it sells bestsellers and new releases at a standard price of $9.99. Some publishers have stated that Amazon's ebook price structure poses a threat to their profit margins. Earlier this year, Amazon briefly removed the ‘buy' button for thousands of printed titles from Macmillan, one of the six largest U.S. publishers, following an ebook pricing dispute.

For more on the ebook pricing negotiations:
- read this New York Times article

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