Amazon vs. Hachette: Don’t Believe The Spin

The internet is seething over Amazon’s reported hardball tactics in negotiations with Hachette. Newspapers and blogs are filled with heated opinion pieces, decrying Amazon’s domination of the book business. Actual facts are thinner on the ground, however, and if history is any guide, we haven’t heard the full story. Here’s how it started.

In a historical quirk of the trade, publishers and booksellers negotiate co-op deals at the same time as the general agreement to carry titles. (For those who don’t know, co-op is the industry term for preferred in-store placement, such as face-out instead of spine-out, position on end-caps, front tables, window displays, and so on.)

At publishers’ insistence, the same practice has continued in the online and e-book world, namely that negotiations regarding virtual co-op (e.g. high visibility spots on retailer sites) take place at the same time as discussions over general terms and publisher-retailer discounts. Read More…