Desmoines News Desk

Amazon signs distribution deal with HarperCollins

Amazon signs distribution deal with HarperCollins

Amazon.com has settled with another the Big Five publishers. The online retailer, whose feuds with large book publishers in recent months have underscored the market power it enjoys in selling e-books, has reached a new multi-year agreement to distribute books published by HarperCollins Publishers. “HarperCollins has reached an agreement with Amazon and our books will continue to be available on the Amazon print and digital platforms,” HarperCollins spokeswoman Erin Crum said in a statement Monday.amazon-sign-box

HarperCollins, which is owned by News Corp, will set the retail prices of its digital books and receive incentives to offer lower prices, reported The Wall Street Journal, which is also owned by News Corp. Shares of News Corp rose 0.28% to $15.98. Amazon rose 0.38% to $383.80.  Amazon recently inked new distribution deals with Macmillan Publishers and Simon & Schuster. Amazon’s contract with HarperCollins, which will release Harper Lee’s highly anticipated novel Go Set a Watchman in July, was close to its expiration. And the publisher, like its competitors, was eager to retain its pricing powers.

In November, Hachette ended its battle with Amazon by agreeing to a new contract that kept the book publisher’s ability to set its own e-book prices. Amazon, which controls about 60% of the market for e-books, has aggressively sought to cut prices it pays for books. For much of 2014, Amazon removed Hachette’s books from its shelves as the companies negotiated for a new contract.

Amazon ordered new inventories from Hachette only after customers placed orders, triggering angry authors to write letters supporting Hachette. In March 2014, Amazon said it was seeking “equitable terms” in pricing, and its tactics are no different than those of big-box retailers that keep only a few copies on hand.

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