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Entitle Closing Down


The link below is to an article reporting on the closure of ebook subscription service Entitle.

For more visit:
http://goodereader.com/blog/e-book-news/exclusive-entitle-ebook-subscription-service-shutting-down

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Lessons from the Apple e-book case


Stephen King, Monash University

The Court of Appeals in the US has ratified Apple’s guilt in the e-book case. It was a two-to-one decision by the three judges on the Court. And it provides two lessons for Australia.

First, when industries are being disrupted, incumbents may collude with entrants to prevent competition.

Second, those who are calling for changes to our competition laws need to read the dissenting judgement. It shows how easy it is to confuse protecting competition and protecting competitors.

The background

Before 2010, Amazon dominated e-books. It set the price at US$9.99 per book, which was less than the wholesale price that Amazon paid to the publishers. The reason was simple. Amazon was loss leading on the e-books in order to encourage consumers to purchase its Kindle reader.

Amazon had achieved a significant market share, selling around 90% of all e-books in the US. But the publishers hated the Amazon model. Cheap e-books meant that the publishers sold fewer (highly profitable) hard and soft backs. The publishers also feared that Amazon could evolve as a peer-to-peer platform that would “allow authors to publish directly with Amazon, cutting out the publishers entirely” (Court of Appeal at 14).

When Apple entered, it offered a different business model. The publishers controlled the retail price of each e-book on the ibookstore, with Apple taking a 30% cut. This is not unusual. Apple uses a similar model for Apps. And by itself, Apple’s agency model was not illegal.

However Apple and the publishers also agreed to a ‘most favoured customer’ clause. Under this clause, the publishers had to ensure that the price they set on the ibookstore was no more than the price for the same e-book on any other site – such as Amazon. Effectively this meant the publishers had to go to Amazon and require that Amazon raise its prices. And the data shows that prices went up.

The agreement between Apple and the publishers breached the anti-collusion laws in Section 1 of the US Sherman Antitrust Act.

The incumbents fight back

When industries are disrupted, whether by Amazon, Uber or Airbnb, the incumbents will fight back.

In the case of Uber, this has been through existing taxi laws, labour laws and government assistance.

In June 2015 the California Labor Commission ruled that an Uber driver should be treated as an employee. Uber is appealing. But fear of both labour and taxation laws have led a number of peer-to-peer providers, such as Shyp (a packing and shipping service) and Instacart (a grocery delivery company) to shift informal contract workers to full time employees.

On May 1, 2015, the Uber offices in Guangzhou, China, were raided and closed down. The municipal government then announced plans to launch its own online taxi App which would cover incumbent taxi services.

For Airbnb, the incumbents have fought back through zoning laws and takeovers. Hyatt hotels revealed in May 2015 that it is investing in Onefinestay, a competitor to Airbnb. Similarly, Wyndham hotels has invested in Love Home Swap, a UK home swapping site.

The Apple case illustrates how incumbents can fight back by using dirty competitive tactics. Fortunately, in the Apple case, the competition regulators were ready to act. But we can expect incumbents in other sectors to similarly push the legal boundaries to protect their profits.

Protecting competitors or protecting competition?

The Apple case also highlights the problem of leaving the interpretation of abuse of market power laws to the Courts.

The US Sherman Act provides little guidance to the Courts. However, the US has a long history of sorting out ‘good’ behaviour from ‘bad’ behaviour. The ‘rule of reason’ approach adopted by the US Courts is similar to the approach under Australia’s current abuse of market power laws. In Australia, a firm with market power only breaks the law if it ‘takes advantage’ of that power. The US Courts similarly ask whether or not the impugned conduct is really pro-competitive, not anti-competitive, behaviour. Both approaches try and ensure the law fosters competition rather than protecting individual, potentially inefficient, competitors.

Unfortunately, the recent Competition Policy Review recommended changing our laws. The new laws will take out the ‘take advantage’ test and leave it to the Courts to sort out the behaviour. But even in the US, with more than 100 years of legal cases, the Courts can get this wrong.

The dissenting judgement in the Apple decision illustrates the confusion. The dissenting judge concluded that Apple’s behaviour, that raised prices for e-books, was unambiguously and overwhelmingly pro-competitive. By raising prices, the cartel made it easier for new businesses to enter the market!

On this basis, all cartels would be good. If you raise prices and profits then the businesses benefit. This encourages new entry, but harms consumers. It is the classic confusion between competition (which benefits consumers) and collusion (which benefits businesses but hurts consumers).

Fortunately, two judges in the Apple case avoided this confusion. But protecting competitors can be tempting for a court – particularly when the industry is rapidly changing through innovation and disruption. In the Apple case it was tempting enough to have one judge dissent. And in Australia, we risk throwing the courts in at the deep end, if the legal changes recommended by the Competition Policy Review go ahead.

The Conversation

Stephen King is Professor, Department of Economics at Monash University.

This article was originally published on The Conversation.
Read the original article.

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Infographic: Desserts Inspired By Your Favourite Books


The link below is to an infographic that looks at 20 desserts inspired by your favourite books.

For more visit:
http://www.berries.com/blog/20-desserts-inspired-by-your-favorite-books?

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Ebook Lending & Bookshops


The link below is to an article that looks at ebook lending and bookshops – does ebook lending impact on book sales?

For more visit:
http://www.theguardian.com/books/2015/jul/06/ebook-lending-wont-put-big-dent-book-sales

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The Ebook Subscription Model


The link below is to an article that considers the ebook subscription model – does it work?

For more visit:
http://the-digital-reader.com/2015/06/26/on-judging-whether-subscription-ebooks-work/

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Books by women are not enough: we need better women’s stories


Natalie Kon-yu, Victoria University

It was interesting to see the novelist Kamila Shamsie’s provocation in The Guardian last week for publishers to only publish books by women in the year 2018 – a provocation which has already been taken up by at least one publisher. Shamsie wrote that:

The knock-on effect of a Year of Publishing Women would be evident in review pages and blogs, in bookshop windows and front-of-store displays, in literature festival lineups, in prize submissions.

It’s a topic that has had some press of late.

Author Nicola Griffith made headlines in late May when she revealed that “when women win literary awards for fiction it’s usually for writing from a male perspective and/or about men”.

Griffith’s findings, which are based on the last 15 years of Pulitzer Prize, Man Booker Prize, National Book Award, National Book Critics’ Circle Award, Hugo Award, and Newbery Medal, are congruent with my own research into which kinds of books tend to win literary prizes.

It is, sadly, unsurprising that male writers win more prestigious literary awards than female writers, but what is interesting is that when women do win these awards, it is typically because they write about male characters, or “masculine” topics.

Focusing on recent examples we can see this pattern quite clearly. Donna Tartt’s The Goldfinch (2013) follows a young boy and most reviews of the book describe Tartt’s style as “Dickensian”; Jennifer Egan’s A Visit from the Goon Squad (2010) features both male and female protagonists as do Elizabeth Strout’s Olive Kitteridge (2008) and Jhumpa Lahiri’s Interpreter of Maladies (1999).

Alexis Wright.
AAP Image/Dean Lewins

Geraldine Brooks and Marilynne Robinson have won prizes for March (2005) and Gilead (2004) respectively, both of which focus on the novels’ male characters. The Australian women who have won the Miles Franklin for the last 20 years focus almost exclusively on capital-H “History”; Anna Funder’s All that I Am (2012); Alexis Wright’s Carpentaria (2006), Shirley Hazzard’s The Great Fire (2003) and Helen Demidenko’s infamous The Hand that Signed the Paper (1995).

Other female winners have had stories set in the rugged landscape of the Australian bush: Evie Wyld’s All the Birds, Singing (2014) and Thea Astley’s Drylands (2000); a setting which has almost become synonymous with Australian Literature, and is notorious for omitting the experiences of women.

Hilary Mantel has won the Booker twice for her novels which focus on Thomas Cromwell, and Eleanor Catton’s award winning The Luminaries (2013) also centres its story on men.

It seems that, as a culture, we are still predominantly concerned with the lives of men or in themes that we view as “masculine” or “wordly”. We still relegate women’s work to the domestic, the interior, the personal.

Author Pankaj Mishra argued in the New York Times in May that:

Novels about suburban families are more likely to be greeted as microcosmic explorations of the human condition if they are by male writers; their female counterparts are rarely allowed to transcend the category of domestic fiction.

But in looking at the data of the history of these awards, I noticed a sharp spike in women winning these awards between 1970 and 1980, inclusive.

In this decade, the Man/Booker was awarded to five women and seven men; the Miles Franklin went to six novels by men and four by women, while in the US the Pulitzer went to six male authors and two female ones, but the period between 1970 and 1980 saw three years, 1971, 1974 and 1977 where the Pulitzer was not awarded to any book, which, according to the Pulitzer Prize committee, means that no one book was able to “gain a majority vote of the Pulitzer Prize Board”.

Interestingly many of the prize-winning books by women authors at this time featured female characters. This surge of respect for female authors happened at the same time as the formal criticism of the literary canon became widely published and new publishers such as Virago and The Women’s Press began prioritising women’s writing.

As Pam Morris wrote in Literature and Feminism (1993):

Feminist literary criticism as a recognisable practice begins at the end of the 1960s with the project of rereading the traditional canon of “great” literary texts, challenging their claims to disinterestedness and questioning their authority as always the best of human thought and expression.

We see this in the ideological shift in the award-giving culture at this time, and it is positive proof that sustained investigation into an industry works. But it also reminds us that without this examination things quickly revert to type.

Shamsie’s provocation about publishing only female writers for a year has generated much reflection already but – over and above this – what happens if women writers produce an over-abundance of books about men? We stay mired in the same kind of ideological swamp in which we find ourselves now.

It’s not enough to publish books by women, we need to focus more on telling women’s stories. Researchers from the New York New School for Social Research have shown that reading literary fiction (over popular fiction):

enhances the ability to detect and understand other people’s emotions, a crucial skill in navigating complex social relationships.

One of the study’s investigators, David Comer Kidd, argued that:

the same psychological processes are used to navigate fiction and real relationships. Fiction is not just a simulator of a social experience, it is a social experience.

While these studies have not looked at gender and empathy, I would hazard a guess that a reader’s ability to view female characters as complex, layered, intellectual beings would have a profound effect on how they view actual women.

In a culture that still fetishes women’s appearance, in which women are under-represented on boards, in government and are over-represented as victims of sexual crime, knowing what women think, valuing it, is, I think, one of the most important things we can do.

The Conversation

Natalie Kon-yu is Lecturer in Creative Writing, Literature and Gender Studies at Victoria University.

This article was originally published on The Conversation.
Read the original article.

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Reading Multiple Books at the Same Time


The link below is to an article that looks at reading multiple books at the one time.

For more visit:
http://bookriot.com/2015/06/14/read-multiple-books-one-time/

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700 Free Ebooks


The link below is to an article that lists some 700 free ebooks of various formats.

For more visit:
http://www.openculture.com/free_ebooks

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High Ebook Prices


The link below is to an article that considers the impact of high ebook prices.

For more visit:
http://goodereader.com/blog/e-book-news/major-publishers-are-screwing-readers-with-high-e-book-prices

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Lessons from Elizabethan Book Piracy


The link below is to an article that considers what lessons can be drawn from Elizabeth (1500s) book piracy for today.

For more visit:
http://www.vox.com/2015/6/1/8697947/elizabethan-book-pirates