Analytics Magazine Analytics Magazine, July/August 2014 | Page 16

ANALY ZE T H I S ! all of this ultimately dooms the human species to a very sad and cataclysmic ending. Along the way, Lanier also wanders off into pleasantly intense digressions on a broad variety of somewhat related topics, including Aristotle, the tenure system, biodiversity and the concept of local optima. He too clearly loves to read. IMPACT ON PUBLISHING While still digesting this thoughtprovoking book, I came across George Packer’s recent article entitled “Is Amazon good for books?” Taking a long hard look at Amazon.com, the website that perhaps most fully embodies Lanier’s concept of a Siren Server, Packer finds that many of Lanier’s more dire predictions are already playing out there. Packer’s particular focus is Amazon’s impact on the publishing industry, and he believes that the stakes here are incredibly high: “In the book business the prospect of a single owner of both the means of production and the modes of distribution is especially worrisome; it would give Amazon more control over the exchange of ideas than any company in U.S. history. Even in the iPhone age, books remain central to American intellectual life, and perhaps to democracy.” I wholeheartedly agree. Just as Lanier predicts, suppliers 16 | A N A LY T I C S - M A G A Z I N E . O R G and consumers alike had originally both rushed to embrace Amazon, for like so many technologies it seemed to magically (that is, without cost) provide all parties with something for which they hungered. As Packer writes, “When Amazon emerged, publishers in New York suddenly had a new buyer that paid quickly, sold their backlist as well as new titles, and, unlike traditional bookstores, made very few returns” – generating fresh revenues for publishers with little incremental investment. Meanwhile, we readers flocked to Amazon in droves for its convenience, its variety, and its low prices. Amazon.com today accounts for more than 40 percent of all printed books purchased as well as 65 percent of all eBooks, so it is probably fair to say that book buyers by and large still love Amazon. For us as readers, this is fortuitous, since the number of independent bookstores in business has declined by more than 50 percent since Amazon’s founding. However, as its share of overall book sales has ballooned, Amazon has taken advantage of its market power to aggressively push the terms of its agreements with book publishers dramatically in its own favor, often through tactics reflecting Amazon’s famously secretive and opaque corporate culture. Meanwhile, Packer reports, the many publishers large and small whose businesses are now W W W. I N F O R M S . O R G