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Obama to provide 10,000 free e-books through your library
President Barack Obama announced a new program on Thursday aimed at delivering access for more than 10,000 e-books to financially strapped schoolchildren throughout the United States. The $250 million program will feature titles from numerous publishers including Macmillan, Simon & Schuster, Penguin Random House, HarperCollins and Hachette, selected by volunteers from Digital Public Library of America. The New York Public Library has signed on to develop the free app. "It's very different than from our generation," Cecilia Muñoz, Obama's domestic policy adviser, told Reuters. "More and more, you're going to be seeing kids using devices, and what we're doing is making sure that there's more books available on those devices." As the president's top economic advisor Jeff Zients pointed out to Reuters, research shows that some 80 percent of low-income children are behind the rest of their grade in terms of reading skills. Few of them have books at home. That's why Obama's program will also work with local libraries, boosting their enrollment of local kids in order to provide them with hardware necessary to enjoy these books. Each age-appropriate title will be made available from the publishers' online libraries, though there's no word on whether the e-title will be given away or simply checked out as traditionally lent books are. Still, any excuse to get kids into the library is a good one. [Image credit: Getty]
Engadget Daily: Holiday Gift Guide, Amazon's Hachette deal and more!
It'll soon be time to wrap those presents, so to help with with the burden of holiday shopping, our latest Gift Guide offers ideas for the tech-savvy folks you're buying for. Read on for the rest of our news highlights from the last 24 hours, including the Microsoft Band review, another day in the Taylor Swift/Spotify saga, Amazon's truce with Hachette and more.
Amazon and Hachette call a truce in their e-book pricing war
Well, that was anticlimactic. Online retail titan Amazon and the publisher Hachette have been sniping at each other for months because they couldn't see eye to eye on how much e-books should cost (and how much revenue Amazon should get off of them). Now, just when it seemed like the war would stretch out even longer, both sides have announced that they've brokered a peace to end the Great Book War of 2014. The most frustrating part? Neither side seems willing to disclose the juiciest details of the deal. Still, the official PR blast mentions that Hachette got what it really wanted all along -- once the terms of the agreement take effect in early 2015, it "will have responsibility for setting consumer prices of its e-books, and will also benefit from better terms when it delivers lower prices for readers."
Authors will fire back at Amazon with calls for a government investigation
If you've been following the protracted war between Amazon and Hachette, you know that Amazon's been stymieing sales of certain books by making it impossible to pre-order them, and pushing back delivery of others all over a e-book contract dispute. The situation isn't really even about Hachette any more -- the New York Times notes that few of the hundreds of signers of a recent open letter to Amazon's board of directors are even published by the French firm. It's about something more fundamental. Those authors (or at least a decent chunk of them) now plan to call on the Department of Justice to formally investigate Amazon for monopolistic activity.
Engadget Daily: Amazon's war on e-books, Ralph Lauren's smart shirt and more!
Today, we break down Amazon's controversial e-book-pricing model, learn about Ralph Lauren's smart shirt for athletes, anticipate LG's round-faced G Watch R and more! Read on for Engadget's news highlights from the last 24 hours.
What you need to know about Amazon's fight with e-book publishers
Unless you've been living in a book-free cave, you may have heard that retail giant Amazon and book publisher Hachette are having a little tiff. It's all about digital versions of books -- so-called e-books -- and it boils down to this: Amazon wants to sell most of them for $10, and Hachette wants to set its own prices depending on the title and author. In the latest volley, Amazon tightened the screws by listing many Hachette pre-orders for printed titles as unavailable and pulling some product promotion pages. In a blog post, Amazon claimed it was trying to do well by consumers and (confusingly) invoked George Orwell. Meanwhile, 900-plus authors -- including household names like Stephen King and J.K. Rowling -- said they were innocent victims and took out a $104,000 ad decrying Amazon's hardball tactics. The dispute shows no sign of abating. So, who's right and, more importantly, who will win?
Amazon wants you to ask Hachette's CEO for lower e-book prices
Amazon's fight with Hachette over e-book pricing just got extra-personal. Hot on the heels of writers attacking Jeff Bezos' "retaliation," the Amazon Books Team has posted a Readers United site that calls on you to email Hachette CEO Michael Pietsch and ask him to lower the costs of e-books. The online retailer doesn't want you to mince words, either -- it wants you to bring up his "illegal collusion" and claim that he's using authors as "leverage." Some writers aren't on his side, Amazon says.
Authors take out full-page NYT ad to criticize Amazon
There's no sign that Amazon and Hachette are close to burying their e-book hatchet, which has prompted the authors caught in the middle to speak up. One of those affected, Douglas Preston, penned an open letter to Jeff Bezos, requesting that he stopped singling out individual Hachette authors for "selective retaliation." After it was published, however, nearly a thousand other writers, including Stephen King, Malcolm Gladwell and Jeffrey Deaver co-signed the letter -- which has prompted the group Authors United to pay for the letter to be printed as a full-page advert in Sunday's New York Times. Apparently the Kindle Team's most recent letter fell upon deaf ears.
Amazon runs the numbers to convince you that e-books should be cheaper
After unsuccessfully trying to charm authors, Amazon is now appealing to its customers during the ongoing war with Hachette. The retailer has revealed the reasons behind the spat, i.e. cheaper e-book prices, and the noble intentions behind it. Using its vast archive of data, the company believes that titles that, surprise, surprise, are priced at $15 won't sell as well as those that are priced at $10. As obvious as it sounds, the company's data says that for every 100,000 copies of the book that are bought for the higher price, 74,000 more copies would be bought at the lower figure, making a total profit of $1,738,000. Given that e-books incur no printing, warehousing or transportation costs, Amazon feels that it's a fair trade off.
Amazon appeals directly to authors in ongoing e-book dispute
Despite sounding like a rogue militant organization from G.I. Joe, Hachette is actually a book publishing group. Tame as that may sound, Hachette is currently engaged in a high-stakes game of Chicken with a juggernaut in the book sales world: Amazon. It's all part of a long-running dispute between book publishers and "the everything store"; even the book titled after Amazon's moniker was involved in the dispute. It goes like this: Amazon wants to price its e-books one way, and publishers want things another way. While the negotiations occur, Amazon pushes back by slowing delivery of physical books by publishers involved in negotiations or, sometimes, carrying limited stocks intentionally so the books are unable to be ordered. Another tactic Amazon's now employing in the dispute? Appealing directly to authors. With cash.
Apple discounts the books Amazon refuses to stock
If you head over to iTunes and look for book pre-orders at $9.99 or less, you may notice something strange: they're all Hachette titles. That's no coincidence -- Amazon is delaying shipment on Hachette books right now, a negotiating tactic it calls an "essential business practice." Authors and publishers think otherwise, with one referring to it as "extortion" that's "illegal when the Mafia does it." As Re/Code pointed out, however, it's ironic that Apple is offering cut rates on Hachette books, considering it was found guilty of conspiring with the publisher to raise prices. Apple has since settled class-action suits that resulted from that judgement, though it won't have to pay if it wins its appeal against the DoJ. Either way, Apple is set to profit by selling buzzy new titles like J.K. Rowling's well-reviewed Silkworm, since Amazon has essentially kneecapped itself. Let's face it though -- Apple also likely enjoys razzing the book industry's 800 pound gorilla.
Walmart exploits Amazon publisher feud to remind people that it still sells books
While Amazon is caught up in an e-book pricing dispute with one of the world's biggest publishers, Walmart is making hay. As the internet retailer continues to squeeze Hachette for better pricing on e-books by limiting the amount of printed books it orders, which include titles from J.K Rowling and James Patterson, competing booksellers are conducting fire-sales to remind consumers that they're a viable alternative (and boost revenues in the process). Case in point: Walmart slashed 40 percent off nearly 400 Hachette titles on its website and shortened delivery times in order to beat its internet rival. The tactic appears to have worked, the retailer said that by the end of last week, physical book sales were up 70 percent in just three days. Amazon seems unfazed by it all and has told inconvenienced customers that they can go to "one of [its] competitors." Many customers have evidently done just that, but their actions aren't likely to help put an end to this e-book feud.
Amazon admits it's limiting Hachette book sales to get better deals
Tried to pre-order JK Rowling's forthcoming The Silkworm on Amazon, only to find that no such option exists? The title is one of several victims of the company's very public spat with publishers Hachette, which Amazon is holding to ransom for cheaper pricing on e-books. Until now, however, the company remained tight-lipped on the tactic, but in a blog post, admitted that it was playing hardball with its rival. What that means for customers is that the retailer is only buying bare-minimum quantities of existing stock and will only offer new books for sale after their publication. In its mind, Amazon is fighting for better (i.e. cheaper) pricing for its customers, but we imagine that someone's forgotten about the poor authors who are likely to sell even fewer copies while this rages along. Update: Hachette, the victim in this stramash, has made a public statement saying that "Amazon indicates that it considers books to be like any other consumer good. They are not." It adds that it won't accept any cash to form an "author pool," a fund to compensate writers who are losing out during the conflict. In fact, the publisher has said that it'll wait until a fresh agreement is made, and then "discuss with Amazon its ideas about compensating authors for the damage its demand for improved terms may have done them." Full statement's after the break, but yes folks, this one is clearly going to run and run.
Amazon steps up pressure on Hachette for better e-book pricing
For months, Amazon has been applying relatively subtle pressure on Hachette an apparent bid to get better pricing on e-books; unnecessary shipping delays and reduced discounts on paper books have been common. Well, it's not subtle any more. The company has started pulling pre-orders for Hachette titles, either listing them as "unavailable" or removing product pages outright. The dispute leaves many caught in the crossfire -- authors lose revenue, while customers have to track down smaller stores that will take advance purchases.
E-Reading Rainbow: Hachette to bring entire e-book catalog to public libraries
If you're still balking at the cost of download-to-own e-books, and would rather stick to the tried-and-true library lending system, then this Hachette news is for you. Come next Wednesday, the entirety of Hachette's ebook catalog -- over 5,000 titles -- will be made available to nonprofit libraries throughout the US. The announcement and finalized pricing model follows two years worth of pilot testing, during which the publisher examined ebook consumption and lending habits at select libraries. Under the currently set terms of sale, e-books that bow in tandem with print editions will run three times the price of their physical counterparts for "single-user-at-a-time circulations, " with prices falling to just one and a half that of the hard copy one year later. By Hachette's own admission, this pricing scheme is not entirely set in stone -- the company plans to continually reevaluate the model on a per-year basis. So, there's hope yet the publisher will gouge libraries a bit less for the perks of e-borrowing.
Judge approves settlement for Hachette, Simon & Schuster and HarperCollins in e-book lawsuit
It's a big day in the world of e-books, and not just for the crew at Amazon. Today, Judge Denise Cote approved settlement terms for three of the publishers accused by the Justice Department of price fixing. Hachette Book Group, Simon & Schuster and HarperCollins each agreed to settle with the government, rather than face trial -- as Apple, Macmillian and Penguin Group will do in June of 2013. As part of the settlement agreement, each of the publishers will be required to terminate their contracts with Apple within one week. Similarly, they will be required to end contracts with other e-book retailers where clauses exist that would hinder the seller's ability to set pricing. Further, the settling companies won't be able to form contracts for the next two years with e-book retailers that would hinder the seller's discretion to set pricing. During the settlement approval period, individuals and companies alike were given 60 days to weigh in on the matter, which included objections from the American Booksellers Association, the Authors Guild and Barnes & Noble. Ultimately, Judge Cote determined that arguments against the settlement were "insufficient" to block the approval.
States reach $69 million settlement with three publishers in e-book price fixing case
When the US Department of Justice sued Apple and five major book publishers over alleged e-book price rigging, it immediately became clear that a few of these companies would do just about anything to avoid trial. That same day, three of the publishers -- HarperCollins, Simon & Schuster and Hachette -- elected to settle with the DoJ. Now, those same three publishers have reached an agreement in 49 states (all but Minnesota), wherein consumers will receive a combined $69 million in compensation. Specifically, the payout applies to people who bought agency-priced e-books between April 1, 2010 and May 21, 2012. Interestingly, the payout includes folks who bought e-books from Macmillan and Penguin, even though those two publishers aren't settling. As for making sure people get paid, Amazon, Barnes & Noble, Google, Sony, Apple and Kobo have agreed to identify and contact affected customers. According to ABC News, most of these retailers will give customers the option of receiving a check or a credit toward future purchases. Sony, meanwhile, will automatically issue checks, while Google will direct customers to an online submission form where they can file a claim. Whatever the method, payments are expected to begin 30 days after the settlement is approved. The DoJ settlement, which is separate from the agreement with the 49 states, is still awaiting clearance.
Australia pondering joining e-book lawsuit bandwagon
If Apple and the Big Five thought they only had to contend with a federal e-book lawsuit in the US, they'd better think again. Australia's Competition and Consumer Commission is inviting local businesses to raise formal concerns as it weighs up launching its own judicial broadside against the alleged cartel. The Commission refused to comment publicly on its plans beyond saying that it was "aware of the latest developments" and would listen to local resellers who had concerns about the Australian market. While Simon & Schuster, Hachette and HarperCollins made back-room deals with the DoJ yesterday, they'd still be involved (at least initially) with the second front of this conflict. Meanwhile, the threat remains of the European Union joining in: turning it from a spot of local trouble into a global courtroom battle for the future of e-book pricing.
Justice Department formally charges Apple, big five publishers in e-book price fixing case (update)
The Justice Department has formally decided to sue Apple, Hachette, HarperCollins, Macmillan, Penguin and Simon & Schuster over alleged e-book price-rigging. Apple and Macmillan have already denied any wrongdoing, saying that the agreements were enhancing competition in an industry previously dominated by Amazon. The case centers around a deal to switch to agency pricing, where the vendor takes a 30 percent cut of each sale rather than the wholesale model which allows stores to sell books at rock-bottom prices. It was previously believed that the publishers had cut back-room deals with the Government agency after bowing to pressure to withdraw Cupertino's "favored nation" status. If successful, the DoJ will allow Amazon and Barnes and Noble amongst others to return to the wholesale model to sell best-sellers at a loss, something that the big five are desperate to avoid, and will look to fight the battle in court. Update: The PDF of the DoJ's filing is now available online -- it makes for fascinating reading. Update 2: Bloomberg is now reporting that Simon & Schuster, Lagardère SCA's Hachette Book Group and HarperCollins have settled with the DoJ over unspecified terms. Hasty!
Justice Department preparing Apple iBooks antitrust lawsuit
The Justice Department is reportedly preparing to go after Apple, Simon & Schuster, Hachette, Penguin, Macmillan and HarperCollins following its investigation into alleged e-book price-rigging. The case centers around a deal to switch to agency pricing, where the vendor takes a 30 percent cut of each sale, rather than the wholesale model that gives publishers more flexibility to reduce prices or even sell e-books at a loss. Some publishers are now trying to agree on a new policy in an effort to stave off the kind of federal suit that nobody wants to wear.
