Amazon's Evolving Role in Publishing: A Decade of Change

Introduction

On May 1, 2011, the publishing industry was shaken by the news that Amazon intended to use its enviable market power to launch its fourth publishing imprint. At the time, I commented that Amazon could perform all of the activities between the delivery of an edited manuscript and the delivery of finished books, thus bypassing the role of traditional publishers.

Now, over a decade later, it's crucial to revisit these observations and examine how the landscape has shifted. This updated article combines insights from 2011 with a fresh analysis of the current state of publishing, demonstrating both the prescience of earlier concerns and the emergence of new challenges.

Amazon's Evolving Role in Publishing: A Decade Later

The publishing industry has undergone significant changes since 2011, but many concerns about Amazon's market power and its impact on the book industry remain relevant. Let's revisit these issues and examine how they've evolved over the past decade.

The Consolidation of Amazon's Power

In 2011, we worried about Amazon launching new publishing imprints. Today, Amazon Publishing is a major player with 16 imprints across various genres. As of 2024, Amazon Publishing has expanded to include 17 imprints, releasing over 1,000 titles, everything from nonfiction, to fiction, to children's books.  

Amazon's power now extends beyond just books:

• Audible dominates the audiobook market
• Kindle Direct Publishing is the go-to platform for self-published authors
• Amazon Web Services (AWS) hosts many publishers' digital infrastructure.

The Evolving Bookselling Landscape

The "showrooming" effect predicted in 2011 has become a reality, with many customers browsing in physical stores but making their purchases online. However, the landscape has evolved in unexpected ways. Many large bookstore chains have faced significant challenges, with some closing their doors.

 Notable closures include:

• Borders Group, which liquidated its remaining 399 stores in 2011, just before the original article.
• Family Christian Stores, which closed all 240 locations in 2017 after 85 years in business.
• Book World, which shut down its 45 stores across the Midwest in 2017.
• Hastings Entertainment, which closed all 123 stores in 2016.

While many brick-and-mortar retailers have struggled or downsized in the face of e-commerce growth, Barnes & Noble has found success by focusing on local communities and smaller store formats. Under the leadership of CEO James Daunt, the company has revamped its business model, allowing individual store managers more autonomy in selecting books and creating a unique customer experience tailored to local tastes. Similarly, between 2020 and 2021, independent bookstore sales have grown 31.6 percent, to $633 million. 

Antitrust Concerns

Antitrust scrutiny of Amazon has intensified. In 2021, the company faced lawsuits alleging anticompetitive practices in e-book pricing. While no major regulatory actions have been taken against Amazon in the U.S. book market, the conversation around big tech's market power continues.

Data and Privacy

The concern about Amazon monetizing reader data has only grown more relevant. With the rise of e-books and Kindle devices, Amazon has unprecedented insight into reading habits. Publishers and authors should continue to advocate for reader privacy and transparency in data collection practices.

The Rise of Subscription Models

Kindle Unlimited, launched in 2014, has become a significant player in how readers consume books. This subscription model presents new challenges for publishers and authors in terms of compensation and discoverability.

Looking Ahead

As we move forward, publishers and authors should focus on:

• Diversifying distribution channels
• Leveraging direct-to-consumer relationships
• Advocating for fair competition and transparent practices in the digital marketplace
• Exploring new technologies like blockchain for rights management and royalty tracking

The publishing industry must continue to adapt to the digital landscape while working to ensure that no single entity wields excessive control over the marketplace of ideas.