Amazon and Simon & Schuster, the publishing arm of CBS Corp., have agreed to a new multi-year print and digital contract, sources familiar with the matter say.
The agreement between the two companies comes at a time when negotiations between Amazon and the Hachette Book Group continue to drag on amid pricing issues.
According to a source, Simon & Schuster will be able to set the consumer prices of the e-books that it will sell on Amazon, but Amazon will be able to put discounted prices on certain titles in some situations.
The books of Simon & Schuster will also receive good promotion on the website of Amazon, the source added.
Amazon renewed the contract with Simon & Schuster, which has recently published titles that include The Innovators by Walter Isaacson and Nora Webster by Colm Toibin, about two months before the expiration of the previous contract.
Amazon's dealings with publishers have been under increased scrutiny lately as authors have joined in criticizing its tactics of negotiation with the Hachette Book Group. The standoff between the two companies, which started in May, has resulted in Amazon taking down pre-order options for Hachette books, along with the reduction of discounts and delayed shipping times.
Amazon previously said that it is only taking a stand; it looks to be able to offer its customers the best possible prices for e-books. While the specific terms of agreement between Amazon and Simon & Schuster are not revealed, the amicable arrangement that Amazon reached with Simon & Schuster will put additional pressure on Hachette to finally give in to the proposed pricing scheme of Amazon.
Another factor that has been placing pressure on Hachette is the fact that several Hachette books have seen their sales suffer due to the ongoing dispute with the online retailer.
"I think it will serve to make Hachette more frustrated with their inability to make a deal knowing that one of their competitors has reached a deal," said InkWell Management LLC partner Richard Pine, who represents authors that have been published by both Simon & Schuster and Hachette.
Amazon and Hachette have called on readers and authors to support their own causes for the ongoing negotiations.
Authors United, which currently has 1,500 member-authors, previously wrote a letter to Amazon CEO Jeff Bezos regarding their thoughts on the price dispute. Not to be outdone, Amazon launched Readers United, which urged readers to contact Hachette CEO Michael Pietsch regarding the dispute.
Douglas Preston, an author for Hachette, leads Authors United. He said that the group is currently writing a letter to be sent to the Justice Department to urge the government to launch an antitrust probe into Amazon.
