While IPG remains in what could be a long-standing contractual disagreement with Amazon over wholesale terms for their clients–and their approximately 4,500 ebooks remain unavailable for sale on Kindle–two other independent distributors of scale did both come to terms with Amazon in the past week or so. Both the Perseus Books Group and National Book Network (NBN) reported to their respective clients on the new terms arrived for ebooks.
Those new contracts were some time in the making; one of the two told clients they “entered into negotiations with Amazon in October of last year and have only just concluded our agreement.” The other underscored that the new terms were retroactive back to January 1, 2012.
As has been reported before, though not with any specificity, Amazon has been adding provisions for coop payments for ebooks this year. (Previously, coop was applied only to Amazon’s print sales.) One of these distributors explicitly states a new provision of the revised contract is that clients will now allocate 3 percent coop on sales of ebooks. One of the two also makes explicit an increase in the portion of all coop, for both print and ebook editions, that goes towards “automation and personalization” (Amazon’s term for the display of merchandising information on Amazon’s site). For that distributor’s clients, only half of all charged coop funds (instead of three-quarters, as in the past) can be spent on specific merchandising programs under the new contract.
Whether you’re in the business of creating or distributing content, the real battleground for “Digital Rights Management” may turn out to be negotiating and managing contracts for digital content. Hear lessons learned from dozens of ebook and digital contracts (on both sides of the table). How are business terms evolving to handle emerging digital and mobile markets? Are there terms in your digital contracts that are holdovers from the print world and aren’t in tune with the realities of digital markets? Learn strategies for assessing whether a contract will meet your needs, and how to recognize potential pitfalls.