• Skip to main content
  • Skip to primary sidebar
  • Login
  • Register

Publishers Lunch

The Publishing Industry's Daily Essential Read

  • Publishers Marketplace
  • Site Guide
  • Help

Hachette Announces Agency Model, Simultaneous Releases; Guild Says Macmillan Will Be at 25%

February 4, 2010
By Michael Cader

Following the discussion at Winter Institute that we covered in Thursday’s lunch, Hachette Book Group ceo David Young formally confirmed their adoption of any agency model in a letter sent to agents. As part of that move, they will indeed drop their strategy of windowed releases and release e-books simultaneously with hardcovers

Young writes: “There are many advantages to the agency model, for our authors, retailers, consumers, and publishers. It allows Hachette to make pricing decisions that are rational and reflect the value of our authors’ works. In the long run this will enable Hachette to continue to invest in and nurture authors’ careers – from major blockbusters to new voices. Without this investment in our authors, the diversity of books available to consumers will contract, as will the diversity of retailers, and our literary culture will suffer.”

He also underscores that “these new terms open doors to all online e-book service providers and create more avenues for delivering e-books to readers.”

Noting that under the new model “we make less on each e-book sale under the new model; the author will continue to be fairly compensated and our e-book agents will make money on every digital sale. We’re willing to accept lower return for e-book sales as we control the value of our product – books, and content in general. We’re taking the long view on e-book pricing, and this new model helps protect the long term viability of the book marketplace.”

The press is on full alert on this story and will make every declaration by a house “breaking news,” but we’ll just remind you that five big houses essentially announced their adoption of the agency model last week by signing agreements with Apple.

Also yesterday afternoon, the Authors Guild posted that–as implied in a Guild/AAR panel discussion last month–John “Sargent confirmed that Macmillan’s standard e-book royalty would be 25% of receipts under their new boilerplate contract.” (Note that Sargent himself has not commented on this.) They add that “we look forward to continuing to discuss with Macmillan other provisions of its proposed new contract.” Meanwhile, a number of agents tweeted “25 percent of what?” after the posting, which is the new question that the agency model raises. Sargent said in his letter yesterday, “the change to an agency model will bring about yet another round of discussion on royalties, and we look forward to solving this next step in the puzzle with you.”
AG

Filed Under: eNews, Free

sidebar

Primary Free Sidebar

Login


Forgot password
Quick Pass users click here to log in
Get Full Access
The publishing industry's essential daily read

Each Publishers Lunch Deluxe subscription includes full access to our searchable multi-year archive of industry news, a nightly email reporting 10 to 50 deal transactions, and our database of industry contacts, scripts, and posting privileges.

Learn More

RSS Automat

  • Noah Baumbach Said to Sell Memoir to Knopf June 5, 2023 Deadline
  • Rushdie: "I’m trying to write a book about the attack on me -- what happened and what it means, not just about the attack, but around it" June 2, 2023 Guardian
  • Hollywood Studios Are Using Force Majeure Clauses to Extend Book Options for Free During Writers' Strike May 30, 2023 WSJ
  • On the Staying Power of Zevin's Tomorrow, and Tomorrow, and Tomorrow" May 26, 2023 NYT
  • Another Postponement: Publishers and Internet Archive Still Negotiating Judgement, Will Try Again for June 9 May 26, 2023 PL court document
  • Martin Amis, 73, Dies of Esophogeal Cancer May 21, 2023 BBC
  • Britney Spears Concedes Delay On Her Book: "It may take me a year, maybe longer who knows ... to share my story" May 20, 2023 Instagram
  • Elon Musk by Walter Isaacson Announced for Publication September 12 May 18, 2023 Press release
  • Penguin Random House and PEN America Sue a Florida School District, Alleging Removal of Books about Race and LGBTQ+ Identify Violates First Amendment May 17, 2023 AP
  • Thomas Coesfeld to Become CEO of BMG On July 1, Ahead of Previous Schedule May 17, 2023 Press Release
© 2023 Publishers Lunch. All Rights Reserved.