How the Big Five Could Have Avoided the Latest Amazon War

A prominent industry analyst, Mike Shatzkin, has been arguing for some time that publishers ought to raise e-book royalty rates. For him, the point is not that this would be the fair thing to do; he just thinks it would be the best move strategically. By leaving royalty rates where they are, publishers have left their nice digital margins hanging out there for everyone to see. And when Amazon sees someone else’s healthy profits, it’s like a dog smelling a steak. As Jeff Bezos has said, “Your margin is my opportunity.”