IPad vs. Kindle. Round 1.
Late Friday night my colleague Charles Pellegrino, author, "Last Train from Hiroshima: The Survivors Look Back," learned that his Macmillan published book (Scott MacRae Books) had been unilaterally removed from Amazon.com sales (that is, you cannot buy it in any format from Amazon at any price, but you can buy it from private dealers who use the Amazon site) as part of a bullying tactic by Amazon against all publishers over the IPad. The story changed again on Saturday, and I spoke to Charlie late Saturday on air, that Amazon is now threatening all publishers with the same preemptive action it has launched against Macmillan if they go through with the deal with Jobs and Apple over IPad pricing. It is a strange fight. Amazon sells digital downloads for the Kindle at $9.99. Apple has negotiated an agreement with publishers to sell the same download for the IPad at $12.99 or $13.99. Apple keeps 30%. Amazon is fighting this because it is more expensive competition? No, because the IPad is a better device than the Kindle, bigger with color and more tricks called apps. In sum, Amazon is in a dogfight with Apple and is shooting some of the authors in order to scare all of the authors and their publishers into obedience and surrender. Trade war, Jeff Bezos billionaire vs.Steve Jobs billionaire. Class action suits to follow. There will be virtual blood. Charlie did Coast to Coast two hours later on Saturday30/Sunday31 night, and the Coast team, led by Ian Punnett, eventually figured out what Charlie was telling them (what he had just told me and my audience on WABC) and they happily joined in the fight against Bezos. I see opportunity to engage the Apple House co-ops, too. Adam Smith says that the invisible hand (virtual hand) will out: to the cheaper goes the spoils. Soon there will be an Apple/Amazon detenete -- waiting on the Kindle upgrade to color. Also waiting on an Amazon/Jobs link up to be fought by Sony/Borders and so forth. And where is News Corp? Why off-load the 30% profit to Jobs? Digital is not owned. Digital publishing is the same as digital audio and video and news. In 1915, everyone with a big machine shop in Michigan and Wisconsin and Illinois and New York figured it was time to build cars and trucks. Can you buy the Packard Twin Six? But there are plenty of Ford Sixes.

