Publishing Is Rotten To The Core

Amazon is regularly slated for the way it manages its tax affairs. I have written extensively about this before, but, in short, Amazon is using common methods for minimizing its tax bills that are used by every major tech company, and many other multinational corporations too).

You can argue these loopholes should be closed (and I would agree, for what it’s worth), but these actions are legal. And I wouldn’t be surprised if the major publishers, and the global media conglomerates which own them, are doing the exact same thing.

Take Harlequin, for example. Harlequin doesn’t just use these corporate structures to minimize its tax bill. It has also used them to reduce the 50% digital royalty rate agreed in some of its initial ebook contracts to a paltry 3%. Harlequin is facing a class action suit because of this, but you won’t find coverage of that in the news media or outrage about Harlequin’s actions among publishing professionals. Read More…

Media Bias and Amazon

Statements from either side in the Amazon-Hachette dispute have been thin on the ground. Both companies are said to have signed NDAs – restricting formal comments while negotiations are ongoing – but Hachette has been leaking to reporters, and marshaling authors and industry figures in its defense, leading to an extremely one-sided depiction of events in the media.

Which is fine, it’s a pretty standard negotiation tactic, and a clever one if media conglomerates like Bertelsmann (part-owner of Penguin Random House), CBS (owner of Simon & Schuster), and NewsCorp (owner of HarperCollins and Harlequin) are rooting for your team.

What concerns me is that media outlets – even those not in the same corporate family as those publishers with a vested interest in the outcome – are taking the Hachette leaks as the complete and unvarnished truth. Read More…

Why Is The Media Ignoring Author Exploitation?

The Amazon-Hachette dispute has caught the media’s attention. But what about the story the media refuses to cover? The media is more concerned with one-sided accounts of Amazon’s perceived actions – when no one really knows the exact nature of the dispute. The media is more concerned with what Amazon might do in the future, than actual author exploitation by the world’s largest trade publisher: Penguin Random House. Penguin Random House owns the world’s largest vanity press – Author Solutions – which is currently subject to a class action for deceptive business practices, breach of contract, unjust enrichment, and violation of business statutes in California, New York, and Colorado. The court papers cover the same ground that I’ve been blogging about for the Read More…