"Amazon.com removed more than 4,000 e-books from its site this week after it tried and failed to get them more cheaply, a muscle-flexing move that is likely to have significant repercussions for the digital book market.
Amazon is under pressure from Wall Street to improve its anemic margins. At the same time, it is committed to selling e-books as cheaply as possible as a way to preserve the dominance of its Kindle devices.
When the Kindle contract for one of the country’s largest book distributors, the Independent Publishers Group, came up for renewal, Amazon saw a chance to gain some ground at I.P.G.’s expense.
'They decided they wanted me to change my terms,' said Mark Suchomel, president of the Chicago-based I.P.G. 'It wasn’t reasonable. There’s only so far we can go.' [...]
I.P.G. told its publishers to immediately begin stressing that their books were available in other electronic formats, including from the Amazon rivals Barnes & Noble and Apple. It also told them to contact their local independent bookstores and point out that they could now sell something that Amazon would not."
— David Streitfeld, The New York Times/Bits
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