March 28, 2024

Barnes & Noble-Simon & Schuster Dispute Said to Hurt Sales

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

AOL, Yahoo and Microsoft Are Said to Reach an Ad Deal

The move represents an effort to challenge Google, which dominates the search advertising market and has increased its efforts in display advertising.

The plan was discussed at a private meeting in Manhattan on Tuesday night among officials from the three companies and executives from the advertising industry, according to an agency executive who attended but who would speak only anonymously because the meeting was private. AOL, Yahoo and Microsoft declined to comment on the plan.

The companies also hope to entice other online publishers to join their partnership. And by joining together and selling for one another, they hope to reduce the need for third-party ad networks that often sell some of the less desirable ad space on their sites.

The plan was first reported Wednesday morning on AllThingsD, the technology Web site. The report said the deal was focused on selling remnant inventory, or the lower-priced ads that typically run at the bottom of Web pages or on secondary pages. Remnant ads are generally sold by third-party networks, usually for lower prices, and feature products or services like weight-loss or teeth-whitening treatments.

The move would signal another step by online publishers to rely more heavily on so-called private exchange technology, which allows them to deal directly with ad agencies without having to use third-party networks. Selling the space could allow the publishers to earn more revenue and gain more control over the data they collect on their users. It would also give media buyers and agencies a one-stop shop for buying advertising space on each of the three companies’ sites.

“What they are trying to replicate is the growth of private exchanges,” said David Hallerman, a principal analyst for eMarketer, a digital market research firm. The exchanges, he said, “offer a buyer accurate targeting, brand safety and good pricing for good reach.”

The companies’ plan would most likely require them to overcome several obstacles. The technologies they use to sell and place ads on their sites are not immediately compatible. Yahoo has an ad exchange called Right Media, and AOL has Advertising.com, which makes much of its revenue from selling remnant ads. Last winter, Microsoft began selling remnant ads through AppNexus’s exchange.

Other issues could include figuring out how to coordinate sales efforts and determining which sales team sells which ad space.

Google dominates the search advertising marketplace, with nearly 76 percent market share, according to data from eMarketer, and the company is aggressively pushing into online display advertising as well. It accounts for about 9 percent market share in display, with projected revenue of about $1.1 billion, according to eMarketer. The projected display advertising revenues for Yahoo, AOL and Microsoft combined would total $2.7 billion, eMarketer reported.

Article source: http://feeds.nytimes.com/click.phdo?i=89c382a1be5eb041c4e434b8d8c04f2b

Japan’s Central Bank Keeps Key Rate at Near Zero

Opinion »

Fixes: Publishers as Partners in Literacy

A program, which makes books affordable for poor children, helps in ways that libraries and book bins can’t.

Article source: http://feeds.nytimes.com/click.phdo?i=43569a2736f237def359ca22b87861be