It’s kind of remarkable that this still has to be repeated so often, but it does, it really does:
I spoke this past week with the communications director at a think tank who has their publishing arm reporting to him. He’s new to the world of books. He reports that his team keeps portraying Amazon as the enemy; from his perspective, they are “the answer”. Yes, he’s worried about whether their increasing hegemony over the book-buying public could ultimately result in some nasty cuts to his margins. In fact, probably they will. Amazon is likely the most profitable account for almost every publisher because their sales are massive and their returns are minimal. Some publishers report that even their demands for co-op spending are less onerous than Barnes & Noble’s. Of course, they will probably push the envelope over time and claw back more of that margin from publishers. Most retailers would.