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June 16, 2008

Exercising Market Power [7:10 am]

Hey, Wal-mart does it — the myriad opportunities of technological mediation and careful design: Small Publishers Feel Power of Amazon’s ‘Buy’ Button

Amazon, the online retailing giant with a fast-rising share of the consumer book market, has adopted the literary equivalent of a nuclear option for rebellious publishers who balk at its demands.

[...] “The buy button is their weapon of choice and that’s how they impose market discipline,” said Paul Aiken, executive director of the Authors Guild, an American trade group that also briefly lost the buy icon, for titles sold from BackinPrint.com, a print-on-demand service for infrequently purchased works. “This is such a clear indication that once they have the clout they are willing to use it to the full extent that they can. It’s ugly with Amazon and will probably get uglier.”

Amazon is saying little about its tactics. But bloggers have been organizing letter-writing campaigns and petition drives accusing Amazon, which bills itself as “Earth’s most customer-centric company,” of transforming itself into the bully of the publishing industry.

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