If You Can't Beat 'Em, Join 'Em: S&S to Retail 5,000 Titles on Scribd

Unfortunately, despite heroic efforts, Scribd has not been able to bar its doors to those passing off as their own the work of others. But, like a policeman giving a sample garment to a dog to sniff, once the website's filtering software recognizes a legitimate copyrighted text it will instantly identify and reject imposters. Call it pre-emptive piracy management.
But there's a far less subtle motivation for publishers to cast their lot with Scribd: its irresistibly low commission on sales. In the first decade of the E-Book Revolution, retailers charged the same 50% discount for the sale of digital content that brick and mortar bookstores charged for print. Foremost among the fifty percenters is Amazon and its Kindle. But of late publishers have begun to question the 50%-off shiboleth. Guru Mike Shatzkin gave sharp voice to this restive group. Pronouncing high discounts "daft," he declared "There is no comparison between the retailers’ costs and risks associated with physical books and those associated with ebooks. There is no economic justification to providing the same level of discounts."
"Now," said Shatzkin, "is the time to change this." You can read about it in detail here.
Picking up on these populist sentiments, Scribd came out of the chute charging 20% off the list price to its content provider customers, and that includes publishers. Stone quotes Scribd chief executive Trip Adler as declaring that S&S "is the first public endorsement by a major force in publishing that the social Web will play a major role in the future of book sales.”
Other standard bearers of Big Publishing may well join the rush to Scribd. The anti-piracy features are certainly attractive, but the telling factor may well be a desperate need to push Amazon and other etailers back to a commission structure that is, well, not quite so daft.
RC
Labels: e-books, Richard Curtis, Scribd, Simon and Schuster