What Publishers Can Learn From Cablevision-ABC Feud

When the publishers of #1 bestselling hardcover Game Change windowed the e-book edition rather than issue it simultaneously, Kindle owners protested by deliberately downgrading the book in their Amazon reviews. Their action, which fell somewhere between populist revolt and temper tantrum, elicited an editorial by Publishers Lunch's Michael Cader urging publishers to do a better job educating the public. "Publishing people who care about these pricing discussions need to get in the online forums and start issuing press releases and find other ways to address readers honestly about price," he said. We agreed with him.

We've changed our minds.

What made us change our minds was the confrontation between Cablevision and ABC over how much the cable provider should pay ABC to carry its programs. Held as hostage was the Academy Awards, one of the most watched shows on the annual television calendar.

The reaction of subscribers was identical to that of Kindle owners deprived of Game Change. They didn't understand the issues, nor did they give a damn who was in the wrong. They wanted their Academy Awards, and they wanted them now. Senator John Kerry, chairman of the Senate Commerce Subcommittee on Communications, Technology, and the Internet, said this about the blackout: "When pulling a signal becomes the nuclear option in negotiation, it inflicts collateral damage on consumers who pay their bills and have done nothing wrong. Someone needs to be speaking up for them in this dispute and those like them, and make no mistake, this is the latest example of consumers getting caught in the middle because the high stakes incentives created in these negotiations are not working for the average customer who just expects their programming to be there when they want it."

Fortunately for the average customer, the dispute was settled in time. (Actually about 18 minutes late, occasioning the wry observation by New York Magazine's blogger that subscribers blessedly missed the egg laid by co-hosts Steve Martin and Alec Baldwin.)

The moral of Cablevision vs. ABC as far as the publishing industry is concerned is that consumers have no patience for such arcane issues as windowing, loss leader pricing or agency business models. They expect their book when they hit Download and they want it at a reasonable price. Educational initiatives are a waste of time. We need to get our pricing act together. Though there is no Academy Awards show to bring us to the brink of catastrophe, the e-book industry will not realize its full potential until we provide our products reliably and at prices that make sense to customers.

Richard Curtis