AMAZON VS. HACHETTE
In the red corner stands the reigning world champion, weighing in at ninety billion: Amazon.
And in the blue corner stands tonight’s challenger, weighing in at four hundred million: Hachette.
In a nutshell:
- Amazon would like to see lower fiction e-book prices, i.e. $9.99.
- Hachette wants to control e-book prices, e.g. $14.99 to $19.99.
For a balanced introduction, see this article.
Imagine that Amazon was a chain underwear store. You could find one in just about every mall in America.
Imagine that Hachette was a popular underwear distributor.
Amazon is where people shop for underwear. Hachette has the underwear that people want to wear.
Suppose that Hachette decides to set its wholesale price at $14.99.
Suppose that Amazon refuses to buy underwear at a price above $9.99.
Should Amazon be forced to stock Hachette’s underwear and sell it at higher prices?
- No. It’s crazy to think…
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