June 7, 2005

Amazon seems to break contract with Audible, but Audible says the joke may be on Amazon . . .

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After “asking publishers for audiobooks for a new download store it says it plans to open,” Amazon.com “is being coy about such key details as a launch date,” reports an Associated Press wire story. The A.P. reports that the giant Internet retailer refuses to say “when any such sales would start or how it would affect its partnership with Audible Inc., the industry-leader in sales of audio versions of books and other publications.” Shares of Audible fell 12.9 percent soon thereafter, reports the A.P. In an interview with Business Week, however, Audible CEO Donald Katz says, “Amazon’s plans seem unclear at this point. They remain a partner of ours, though the revenue generated through the partnership remains immaterial.” He doesn’t seem to feel threatened, however: “Running a first-class service enterprise,” says Katz, “is very different from moving boxes.”

Dennis Johnson is the founder of MobyLives, and the co-founder and co-publisher of Melville House.

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