Amazon and HarperCollins renew friendship with multi-year contract

April 14, 2015 3:05 PM

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Amazon and HarperCollins renew friendship with multi-year contract

Amazon started mending its tattered relationship with the big five publishers last year, signing deals with Macmillan, Simon & Schuster and even Hachette. Now it's HarperCollins' turn to make peace with the e-commerce giant, according to The Wall Street Journal. While the publisher held out on signing the contract, it reportedly agreed to the same terms the other three found acceptable, just in time for Go Set a Watchman's (Harper Lee's controversial second novel) release in July. The multi-year agreement apparently states that HarperCollins retains the right to set prices for its eBooks and to decide when to offer discounts. It also says the publisher will get to keep 70 percent and the retailer 30 percent of the revenue from each eBook sale.

Amazon's war against the big five stemmed from disagreements about pricing. The website wanted to offer most eBooks for $10 a pop, but the publishers wanted the power to set each title's price. Things got so bad, they struck a deal with Apple in an effort to raise prices -- an action that ultimately...

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