posted at 17:50
Author: Jason Abbruzzese
Amazon Strikes Deal With Major Publisher Simon & Schuster
Amazon has struck a multi-year deal for the sale of print and ebooks from publishing giant Simon & Schuster, both companies confirmed to Mashable. "We are very happy with this agreement, as it allows us to grow our business with Simon & Schuster and help their authors reach an ever-wider audience," an Amazon spokeswoman told Mashable. "Importantly, the agreement specifically creates a financial incentive for Simon & Schuster to deliver lower prices for readers." Details were not immediately available about the terms of the deal, but an memo from Simon & Schuster CEO Carolyn Reidy to authors indicated that it had convinced Amazon to back down from its hardline of selling ebooks at $9.99. "It addresses our mutual concerns about preserving the value of our intellectual property in the marketplace, as it is a return to a version of agency pricing that, with some limited exceptions, gives control of eBook pricing to Simon & Schuster, while providing us the flexibility to deliver great prices for readers." "Agency pricing" is a system in which publishers decide on the price of a book. Amazon has grown to dominant the publishing industry with about 67% of the ebook market. Amazon's hardball negotiating tactics combined with its desire to keep ebook prices has ended in a standoff with Hachette, which is believed to be ongoing.

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