Dive Brief:
- The long dispute between Amazon and Hachette has been resolved, the two companies announced Thursday.
- The retailer and publisher have signed a multiyear contract, yet specifics of the deal have not been disclosed.
- The New York Times is reporting that Hachette has obtained the ability to set prices for its e-books, a major cause of contention in the dispute.
Dive Insight:
After a dramatic year of author protests and an embargo of Hachette titles from Amazon's website, both parties in the dispute seem satisfied with the final offer.
The fine print is worth reading, though. While allowing Hachette to name its own prices, there remain "specific financial incentives for Hachette to deliver lower prices," said David Naggar, Vice President of Kindle in a release. So while the publisher has control of pricing for its e-books, Amazon seems to have set boundaries to maintain its bottom-line pricing scheme.
The agreement seems to resemble a past Amazon deal with Simon & Schuster, and perhaps will be used as reference for future deals between Amazon and other publishers.