The first chip has fallen in the ongoing dispute over e-book prices. "Big Five" book publisher Simon & Schuster has reportedly inked a new contract with tech giant Amazon.
Simon & Schuster and Amazon penned this multiyear deal with more than two months left to spare in their old contract.
What's more is both parties seem happy with the contract being signed. Business Insider quotes Carolyn Reidy, Simon & Schuster's CEO, as saying, "[The new agreement] with some limited exceptions, gives control of e-book pricing to Simon & Schuster." (Video via Digital Book World)
Jeff Bezos said in a statement about the new contract, "The agreement specifically creates a financial incentive for Simon & Schuster to deliver lower prices for readers."
The two companies have not made the details of their deal public, but if their statements are to believed, both sides got what they wanted. (Video via Amazon)
Meanwhile, the messy negotiations between Hachette Book Group — another one of the Big Five publishers — and Amazon rages on after more than six months of back and forth.
The New York Times speculates what could possibly be the reason behind Amazon's Dr. Jekyll and Mr. Hyde negotiations: "Perhaps Hachette's refusal to commit helped inspire Amazon to make an agreement with Simon & Schuster. If so, a deal might inspire a settlement with Hachette."
HarperCollins is next in line to renegotiate a contract with Amazon — which, by the way, has its hand on about 67 percent of the e-book market.
“Amazon in attacking authors has created a religious war. Writers are religious about books.”
Authors United, which includes famous author James Patterson, has asked the Department of Justice for an antitrust investigation into Amazon. (Video via Bloomberg)
No word yet on whether the DOJ will in fact launch an investigation or whether this deal with Simon & Schuster will have any effect on Authors United's stance.
This video includes images from Getty Images.
