Macmillan has announced that they intend on entering the e-Book subscription model business, in an attempt to broaden its distribution channels. CEO John Sargent mentioned that the primary reason they are engaging in the whole Netflix for eBooks concept is because Amazon accounts for 64% of all Macmillan digital sales, and this must change.
Sargent outlined Macmillan’s plans for the future to his stable of authors, illustrators, and Agents “In our search for new routes to market, we have been considering alternative business models including the subscription model. Many of you know that we have long been opposed to subscription. We have always worried that it will erode the perceived value of your books. Though this significant long-term risk remains, we have decided to test subscription in the coming weeks. Several companies offer “pay per read” plans that offer favorable economic terms. We plan to try subscription with backlist books, and mostly with titles that are not well represented at bricks and mortar retail stores. Our job has always been to provide you with the broadest possible distribution, and given the current financial and strategic incentives being offered, we believe the time is right to try this test.”
It is very likely in the next few weeks we will hear about Macmillan signing an e-Book distribution deal with Oyster and Scribd. These are two companies not affiliated with Amazon and engage in the pay per read model, which is what Macmillan is looking for.