Macmillan CEO John Sargent announced yesterday in a letter to authors and agents that Macmillan has reached a multiyear agreement with Amazon for the sale of both print books and e-books. Under the deal, e-books will be sold under the agency model, which allows the publisher to set its own prices and avoid Amazon’s strategic discounting of key titles. This will allow Macmillan to sell books above Amazon’s artificially deflated prices, potentially leading to more income for authors, but it leaves in place the inequitable 25% of net proceeds royalty rate that Macmillan regularly offers authors on e-book sales. The agreement will take effect of January 5, 2015.
The deal makes Macmillan the third major publisher to announce a new agreement with Amazon after the expiration of the publishers’ settlement agreements with the U.S. government, which banned the agency model and required each publisher to allow retailers to discount e-books for a defined period. These agreements, known as “consent decrees”—whose durations were staggered at six-month intervals (Macmillan’s ended December 18)—were settlements of the lawsuit brought by the U.S. Department of Justice accusing five major publishers and Apple of conspiring to fix e-book prices in the lead-up to Apple’s 2010 iPad launch. After the publishers each settled, the case continued as U.S. v. Apple.