Amazon-Macmillan Brawl Gets Even Nastier

TechFlash reports: Despite Amazon's recent statement that it would eventually have to "capitulate" to publishing house Macmillan over electronic-book prices, the online retailer continues to disable the buy button on Macmillan titles, both hardcover and digital, on its website. Today, Macmillan fired back, taking out a full page ad in the New York Times for one of its top titles, The Checklist Manifesto, by Atul Gawande. The ad says the book is "Available at booksellers everywhere except Amazon."

The Checklist Manifesto is published by Metropolitan Books, an imprint of Macmillan. Macmillan is getting more vocal in its fight with Amazon. Macmillan CEO John Sargent earlier took out a paid ad in Publishers Marketplace explaining his position to authors and the literary community.

Macmillan wants to set higher retail prices on new-release and bestseller e-books, up to $14.99, with retailers like Amazon taking a 30 percent cut. Amazon's current model is to pay the publisher half the hardcover list price for e-books and sell them for $9.99, often at a loss. Macmillan and other publishers typically make more money off e-books under the Amazon system, but fear that the $9.99 standard will lower the value of books generally in the mind of consumers.

Some publishers, Macmillan included, say they will delay digital editions for Amazon's Kindle unless their pricing demands are met. Looming over all this is Apple, which is offering publishers the ability to set higher prices on e-books on its new iPad tablet.

While Amazon signaled it will "ultimately" bow to Macmillan's position, the online retailer isn't moving fast to restore Macmillan books—perhaps sending a signal to other publishers that it intends to play hardball on the e-book issue.

Macmillan CEO Sargent took out another ad in Publishers Marketplace, saying his firm has been in "constant discussions" with Amazon. Addressing Macmillan authors and illustrators, he writes:

"I cannot tell you when we will resume business as usual with Amazon, and, needless to say, I can promise nothing on the buy buttons. You can tell by the tone of this letter though that I feel the time is getting near to hand."