Simon & Schuster imposing four-month delay on e-book versions of major upcoming releases
By Ross Miller 
posted December 9th 2009 9:34PM
posted December 9th 2009 9:34PM
After hardcover and before paperback. In Simon & Schuster CEO Carolyn Reidy's mind, this is when we as consumers should be expecting the digital copies of our favorite page turners to come out. Putting money where its mouth is, so to speak, the company has announced that for around 35 of its major releases coming early next year, the e-book iterations won't be out until four months after the physical releases. Seeing as hardcovers can debut at $27 while their digital equivalents can run $10 or less, Reidy notes one of the driving motivations behind this move is to curb consumer expectations that a new novel is worth only one Alexander Hamilton. It's a historically valid concern, especially when you consider how iTunes taught us that songs are only worth $1 apiece, but in the long-term, we don't expect this delay-on-digital trend to stay afloat. The e-book business is growing, and that delay is too artificial for its own good -- at some point, the argument's going to have to shift back to day-and-date pricing tiers. We'll be very interested to see just how this paper-borne release gap pans out from a sales standpoint.
I don't like the pirating of books, but I must acknowledge that publishers are getting exactly what they deserve when, in light of stupid practices such as this, book pirating goes up. They're going to release a book, hold on to the electronic copy for four months, then wail and moan when someone scans it and makes it available for free.
When I got an ebook reader just over a year ago, and loved it, I decided that my love affair with physical books was done. I haven't bought any since, and with the money I've saved, ebooks being cheaper as they are, the reader has more than paid for itself. It's the way things are going, and S&S looks like they're just standing in the path of oncoming traffic.
@dlomax. it's not really about pirating. those that want the ebook will wait until the book comes out. just like those that don't want to spend $30 on the hardcover got it from the library or waited for the paperback. so the delay won't do anything in the end and they will push the ebook release sooner
Theres going to be a lot of warehouses full of dead trees. A small fraction of releases are "gotta buy it now at a 200% markup" worthy.
Let's say you've got a Kindle or Nook... and you've got your eye on some great book that is coming out. Having to wait 4 months to get the ebook version might just make you get it at the library for free... or never read it at all.
One nice thing about ebooks is the instant gratification of getting the book delivered to you in a matter of seconds. And apparently people are WILLING to pay for ebooks. Come on publishers... you're turning down money!
I imagine $10 instant ebooks have a high "impulse buy" factor vs. driving to the store to buy the hardcover... or waiting for it at the library.
This would be like when a new CD comes out... but iTunes and AmazonMP3 gets it 4 months later... how crazy would that be?
@Michael Scrip
Exactly. The people who like the physical form of a book will buy the book, but the people that transitioned to Ebooks wouldn't dare touch one. They wouldn't lose more than a few sales if they simultaneously release (their sales would probably be higher seeing how people get hyped for something at a release date, not 4 months later).
@Michael Scrip
Well movie studios get away with it so I dont see what the big deal is.
They're just hurting themselves. Ebooks are growing quite quickly, and by doing this they're only losing money to the competition.
It's $10 of pure profit. No need to buy materials, print on a press, distribute to wholesalers, ship to retailers...etc... How much does all of that BS cost these people.
I heard John Grisham bitching about this, saying ebooks should cost as much as a hardcover. GET BENT Grisham.
@(Unverified)
Exactly. The book exists on a computer somewhere. Then it's sent to the manufacturer to be printed on dead trees. Then a cover is printed, it's boxed up and shipped to thousands of stores.
I say cut out the middleman and sell the digital version for $10 to whoever will pay for it.
But at least paper books have some value... people do like to collect books or lend them to friends or family.
Newspapers, on the other hand, are a complete waste of paper. First of all, it's yesterday's news... and you read it for one day and throw it away! IThat makes me sick.
@(Unverified) I voted you up on this, but to be fair, I think that publishers should charge exactly as much as they can to realize the profit that they wish to.
That having been said, piracy is rampant, and extremely easy. Charge enough, and you'll just piss people off and force them into piracy. Same deal with playing around with release dates.
I'm a huge capitalist, but I'm also a realist. While I look to competition to result in the best product possible, and believe that any good capitalist should try to maximize the return on their work, I also realize that we don't like in 14th-century Europe. You can hate piracy all you want, but it doesn't change the fact that it exists one iota. People are willing to pay money for things, but as far as paying for information goes, whether in the form of data, entertainment, or anything else, as the price and inconvenience rises, so does the rate of piracy. Charge $3 to download an HD-quality movie with no DRM over your cell phone, and tons of people will buy it; charge $100 to download an SD-quality movie with tons of DRM over a wired Internet connection, and you're going to rapidly find out why things like Napster, Suprnova, The Pirate Bay, and whatever comes next exist.
This is becoming EXACTLY like music used to be (and still seems to be).
Hopefully this time these companies go under and the actual artists and writers can profit by publishing themselves digitally. It really can't be that hard to do- it's just that those companies refuse to die.
@(Unverified) I agree with you that this is a great time for writers to cut out the middle man and charge what they want for their works. However to wish publishers to dies is pretty heartless.
I don't care if they come or go. Personally it doesn't matter to me as long as their aren't any industry 'protectionist' practices going on here--government bailouts/intervention. I think a fundamental problem Americans have right now is they are scared about what would happen if an industry collapses. Its going to happen, but when it does, a new and better industry should emerge from its ashes with more modern business models as opposed to bailing out companies to stick to their archaic business strategies.
Its better than nothing
STUPID.. Just Stupid!
This is just BEGGING for ebook piracy. Talk about shooting themselves in the foot.
@(Unverified) bring on the russian ebook websites. gobooks.ru ??
I guess they are only interested in impulse buys if you drag yourself into a store.
Sorry but it sounds like they are just wanting to kill trees for some cash .. Personal i think all BOOKS , COMIC BOOKS and MAGAZINES are out dated and time for a big change .
Price would go down on all three and sells would go up .. Magazines ( Done like how Times Inc . is doing - Interactive Magazines ) is a big step forward to changing , but selling point needs to stay down , yes let look pretty , but what is there selling point . 5.99 like magazines today ? Interactive of not , thats allot . How about 3.99 , i would then start buying more magazines i want .
Comic Books , Digital comics have been going on for a few years now , but with out a iTunes store to sale them they are dead at this point . Yes you have the collectors and up starters that just watched Iron Man on blu-ray ... LOL , but come on With out a colored E-Reader we are dead with this one . or are we .. No Internet tablets and even Net Books could make it useable , even your everyday computer and laptop would work fine . iPhones not so much .
Books , come on look at how much we could save on paper , and at the least have a huge Digital Libra back up system for all those good books for the future , look at what happiness to paper over time . Look at all the new readers out there as well . Buy a book for 10 dollars that only coast you 1 dollar to make . that is a 9 dollar profit right off the bat . over time your going to see more sales in books to where they will over take the sales you see today .
not just that Schools need to make it a standard that instead of Carrying about 5 to 6 books in a huge book bag , you have to have an e-reader for every student , Parents must buy . Schools will supply the books from there site or something like that . Kids could take better note , store more info with in there e-reader , and be more active in reading then ever before .
@PITBULL831
I'm not sure about "outdated", in many spots we could replace them, but I work at a summer camp in the summer, and that place is big on comics, all of which need to be in physical format. We're to busy to be charging/worrying our devices(and the kids can't have them)
@zap2 Comics , Books and Magazines will always have there collectors and there once a year readers , but what im talking about is for those hardcore readers , Not the collector or the once a year guy . it would bring the cost down allot . meaning less trees we have to kill off every year for some new twilight or hairy potter book .
Students at school wouldn't grow up with back problems cause there books weight more then they do . Homework would be easier for the parents to monitor , and easier to help there kids with .
Now you will still have collectors or kids that just want to book , or even kids that at camp that want something to read . Comics books , and books in paper could still be in use , just not in the numbers we see them in today . instead of making millions of copies of that one book , they make a few thousand for Pre-Orders and small book stores only ..
@PITBULL831
And who pays for the ebook readers at the schools; that damn sure isnt coming out of my taxes
What about colleges will the colleges pay for them if not thats an added expense for the students and the publishers will probably keep the same prices.
@Xoy Look at how much they pay for each text book today , anywhere from 75 to 100 dollars per book , each student has to have at least 4 books ( History , math , science and english ) not to mention other books for other classes . So schools pay up to 600 per student on books . at the least . Even if they make it where parents pay 75% of the device for there kid it would take there kid threw all 4 years of JR. High , and could take them threw High School . One device that would pay for itself over the years .
1 to 5th grade could supply the students with them for half the price that they would have to pay for most of there supplies . Kids could take notes with it , keep track of there homework , and have a list of book that teachers might want to recommend for them to read over summer breaks .
As for collage students , lets look at that ... Books alone in collage cost up to 1000 dollars or more for allot of there classes . I would prefer to buy one E-Reader for 250 dollars and then pay less on my text book for that class . Take notes for that class with it . and if they where smart keep class schedules for that semester .... Turn in home work over wifi interaction .
as for Publishers , they need to be policed on pricing when it comes to E-Books for Schools . at that they need to be policed for books with all . Like iTunes did with songs , TV Shows and Movies , someone needs to do this with E-Books . Why pay 50 dollars for a book that they didn't have to print , why pay 30 dollars a best seller when i myself can't resell it or lend it to a friend .
Someone out there must have the BALLS to tell these publishers to F off so they can get the knowledge out there to everyone .
Plus with Students all owning an E-Reader there wold be an increase in book sales . compared to what they have been .
@PITBULL831
With college students it may not be worth it though; lets say the reader cost 250 if you only taking a few classes it would be cheaper to buy the actual book.
Better yet what happens if the reader breaks during the semester how long would it take to be fixed and during that time I would be without a book, whereas with a real book if it was to brake it could possibly still be usable.
So, just to make sure we're absolutely crystal clear, Kindle owners and future Nook owners: Carolyn Reidy thinks you're all cheap asses. The fact that you've demonstrated that you're willing to spend between two and three hundred dollars for a *device* to read books is not enough to convince Carolyn Reidy that you're worth her time. The fact that you are clearly among the most passionate and well-funded book readers tells Carolyn Reidy that your sorry ass needs to wait your damn turn to get books while the REAL fans with the REAL money pay their $30 dues.
Carolyn Reidy also went on record saying "F$@^ Kindle owners. Stinking media whores with no cash. Hoodlums, I say! Hoodlums!"
Oh look another industry that is going to refuse to sell their content to customers in the format they want and at a price they'll pay. You would think people involved in the publishing industry would have a little greater appreciation for history.
I guess not...let the stupidity begin all over again.
just finished reading under the dome...nice
@Chaos Theory i started it yesterday!
@Chaos Theory But did you read it on a Kindle?
So basically they see eBooks as paperback books? (Which come out 4 months or so after hardcovers).
@dogcow 12 months after the HC is standard.
Fine. I vote with my money. Making me wait an extra 4 months isn't going to make me buy the hardback, so they're still out that money. In fact, if a publisher prices their ebooks at hardback prices, I don't buy them either; not until the price drops to something reasonable.
@WarnerYoung Agreed. I personally think $10 for an eBook is a little high, considering the low cost involved compared to HC or paperback. The only cost is royalties going to the author, right?
@groberts1980 Well, there's editing and such. The question really is, how much does it cost for a bestseller to reach the store as a hardback? We know that the delivery costs of an ebook are effectively zero, but how much higher than the delivery costs of a hardback is that? My guess is that the cost of production and delivery per unit is, at most, only a couple of dollars at least for bestsellers. The rest goes to editing, production, royalties. So logically, the eBook I assume should probably be (generously) $22 for a book that would be $27 in the store, if what we're talking about is simply removing the extra cost of production of the paper and transport. I would be quite happy for S&S to charge that - which seems reasonable - for the first few months, and then drop the price. What's asinine is denying people the opportunity to consume media in a manner they want, period.
What store charges cover price for hardbacks? Even buying day one, I don't think I've ever paid more than $20 for a novel.
I probably spend $40-$50 on ebooks a month. But shit like this will just drive me to newsgroups. Yep, Under the Dome, pictured above, was released mid-November but it won't be available on the Kindle until Dec 24th. I found that out when I went to go buy it for my Kindle. And yet, there it is, staring at me in alt.binaries.e-book.
Decisions, decisions...
@SirBC me likey! must go back to 1996 and activate newsgroups.
Just when you thought it couldn't get worse than the first installment of "Who killed the electric car" here comes "Who killed the eBook".
I guess I'll be waiting 4 months to read Simon & Schuster's finest then. :-D
Too many other good books to read to get that anxious anyway.
Its funny I hadn't bought a book in over 10 years and reading had fallen to the wayside because of the pain I had in my hands of holding a book and uncomfortableness of turning pages. As a kid growing up in the digital revolution books just didnt feel right for me reading was meant for screens. Since I bought my kindle I have spent over 100$ on books and usually buy a book or two a month. Reading is fun and exciting to me again and I remember what I missed. Like the other comment said a lot of my buys were impluse buys on books. I'm in no hurry to read a book with billions of books out there i'm sure I can find something to read in the 4 months I have to wait for whatever book simon and schuster wants my extra money for.
This Simon & Schuster decision proves how cheap hardbound books must be to produce and distribute. The $27 they get must contain a lot of profit, otherwise they wouldn't mind giving up the paper, production, and delivery cost of hardbound books for the $10 ebook sale, which should be nearly 100% profit.
Of course as others have mentioned, this strategy is quite dumb, as it will lose sales. Someone with a Kindle or Nook in hand will not want to wait, and won't buy the hardback, so they will take the only course available - illicit free files. What's worse for the publisher is that once these initially honest people get comfortable finding shared files, they may not return when the policy changes and ebooks are no longer delayed.
@appsman HCs are sold to vendors at 50% MSRP. so when amazon/walmart/whatever dips below that threshold, they are basically using them as loss-leaders.
so, effectively, a $28 HC sold for anything more than $14 as an ebook is not much more than the publishers being hyper-greedy.
now...the argument could be made that amazon (f.e.) takes a big chunk out of these prices (usually it's 50%, but amazon will kick it up to around 70% in return for exclusivity -- 70% being a pretty standard rate for paper books.) the fallacies that the publishers work under in that regard are twofold:
1. no printing has to take place. printing and binding are NOT cheap.
2. part of the reduced return can logically attributed to the publishers essentially having to play in the vendors sandbox -- i.e. amazon builds, develops and maintains the kindle, B&N the nook, etc -- and that isn't free.
in terms of raw math, if a HC book sells for $28 MSRP and is actually sold for $14 at the vendor, $9.8. goes to the publisher and $4.20 to the seller.
in that $9.8, the publisher has to cover advances/royalties, publicity and printing. i have honestly no real hard data on how much the first 2 are, but for the most part i'm given to understand that printing and whatnot is 1/3 of their profit, so lets call it (conservatively) $3.
now, if the same book is sold as an e-book for $10 with a 50% profit, then that would indeed be a bit below their dead tree edition, sans printing (not by much, but hey...)
but...most first-run HC books on the kindle store tend to be sold at around $13-14 -- at which point in time, the numbers start to balance.
this does not include the aforementioned upgrades to 70% for exclusivity and whatnot, so with little effort a publisher could drop the price of a HC to $10, sell it on amazon and more than likely connect with the largest share of their prospective audience anyway -- and still make about as much profit as before.
bottom line, the logistics, momentum in the marketplace and accounting just don't bear out what S&S is doing, imo. i wouldn't be surprised if before long a different motive emerges (read: if S&S decides to become a exclusive first-day content provider with the mythical apple tablet -- well, that would be quite crude of them.)
otoh, i've come to accept that occasionally believing in the sheer stupidity of stodgy old american business interests isn't necessarily a wrong thing.
@Argent99 - At the very least, it would make more sense for them to price the eBook at whatever number they feel equates the equivalent HC profit and release it in sync with the HC. Every book buyer knows that prices decline with time, but many still will not wait and happily pay a few more $ to get it today. That's no different than the market they already know.
One other thought is that Amazon is at a point now where they could throw their weight around, Apple-style, and refuse to carry the paper versions of books that are not made immediately available as ebooks. But I supposed Jeff Bezos doesn't have to be the heavy, he can simply wait until this bad idea dies on its own.
@appsman even better.... withhold hardbacks until ebooks are out. man, i'd be the rogue bezos if i could be....
At first I thought this was lame. But in reality I never buy hardback's any way. I always wait for softcover. Which is cheaper and about the same price of the eBook.
But the glory of this is that not all publishers will do this. And the market will decide what direction is more favored by the Consumer.
way to save the rainforest, idiot CEOs.
I have no problem with that.
*Note to self. Never buy a Simon & Shister book ever again. Oh, did I say that out loud.
A digital copy should be cheaper than a paperback, if they really want to sell books. They are being greedy.
I'm more interested in out of print books than new releases. By the time you discover an author's 8th book, the first three are out of print and impossible to find.
It wont be long before someone takes a scanner to a used book store and bootlegs some copies.
Amazon sells those bestsellers at a loss for $10. These assholes make the same cut regardless.
Anyway, nice to see the industry supporting the same sort of bullshit that lead to the widespread pirating of music and movies. Who wants to take bets on how long it takes for these assholes to come back on hands and knees begging people to stop pirating and pay them $5 for their books?
Hmm, that's funny, I just decided I'm imposing a permanent delay on any versions of Simon & Schuster releases.