Industry executives, as well as authors of recently published Simon Schuster books and their agents, say that Barnes Noble has reduced book orders greatly, to almost nothing in the case of some lesser-known writers. They contend that the move is damaging their sales. Authors say the retail chain has taken other steps, like not giving them display space or allowing book tour appearances in its stores.

Simon Lipskar, the president of Writers House, a literary agency in New York, said, “Without pointing fingers, authors are being hurt by this, and I think it is despicable.”

The conflict, which is being closely watched by other publishers, underscores the pressure on the publishing industry and Barnes Noble as they try to compete with online retailers like Amazon. This is the first time that Barnes Noble has used the sales of books as a negotiating tool, industry executives say. Amazon, which is known as an aggressive negotiator, has removed online “buy” buttons from books during negotiations before, most famously with Macmillan in January 2010.

The dispute centers on the financial arrangement between Barnes Noble and Simon Schuster. While neither side will specify exactly what new terms Barnes Noble is seeking, a senior executive familiar with the negotiations said that the bookseller wanted to pay less for books and receive more money for giving titles prominent display in its stores. Such display spots are coveted because they are thought to be critical in helping customers discover new books.

Those familiar with the disagreement — who spoke on condition of anonymity because the negotiations are confidential — say Barnes Noble believes that because its physical display space is so important to publishers, and because it is the last major retail chain remaining, publishers should be doing more to support it. Barnes Noble has told Simon Schuster, a senior executive said, that at least one other publisher has accepted these new terms.

Simon Schuster has argued that while it wants to support the retail chain, it cannot afford the terms Barnes Noble is demanding. The publisher’s chief executive, Carolyn Reidy, would not give specific details, but said the two sides were at odds over many issues, including both physical and digital distribution.

“In this new world, it is just getting more complicated,” she said in a phone interview. “There are more factors involved. They get more fraught. Terms have to work for both sides, and obviously we have not agreed yet.”

While it was clear that an accord  was not imminent, Ms. Reidy tried to put the best face on the situation. “We expect ultimately there will be an agreement,” she said.

Mary Ellen Keating, a spokeswoman for Barnes Noble, said: “As a matter of policy, we do not comment on relationships with individual publishers. However, we do support publishers who support our digital and retail book businesses.”

Barnes Noble first asked for new terms from Simon Schuster last summer, but the negotiations became more serious in January when the bookseller started limiting orders as part of its strategy. The development was reported in late January in Publishers Weekly, and on Friday The Wall Street Journal’s Web site reported further on the standoff.

Barnes Noble would not confirm that it had reduced Simon Schuster books as leverage. But Simon Schuster editors, as well as agents and writers who work with them, are apoplectic on the subject, since Barnes Noble accounts for about 20 percent of consumer book spending and is a main conduit for publicizing new releases.

Laura Gross, the literary agent for the best-selling author Jodi Picoult, said the dispute had certainly hurt sales of her client’s latest book, “The Storyteller.” Barnes Noble has “taken limited orders, limited placement, and did not do the normal outreach to their customers online, which really hurt,” Ms. Gross said.

Ms. Gross said that through public speaking engagements, Ms. Picoult has been able to rally sales (her book is now No. 1 on the New York Times hardcover best-seller list), but, she added, “This must be hitting smaller authors hard.”

Article source: http://www.nytimes.com/2013/03/23/books/barnes-noble-simon-schuster-dispute-said-to-hurt-sales.html?partner=rss&emc=rss