Amazon announced today that it had reached an agreement with Andrew Wylie, head of the successful New York agency whose clients include such authors as Oliver Sacks, Salman Rushdie, and Philip Roth, as well the estates of William Burroughs, John Updike, W.H. Auden, and the like. Amazon and the Kindle e-book store will have exclusive rights to publish several books by authors Wylie represents, cutting all other players (such as authors’ paper book distributors) out of the deal. It’s a big win for Amazon, but the start of a painful period for consumers.
Picture all the e-books that are out there as being in a big pie. Amazon is cutting a piece of the pie out and putting it in their own pan. Pretty soon, the other players will be furiously cutting their own pieces out of the pie and isolating them in their own pans. The end result is a messy and fractured marketplace that’s difficult and confusing for consumers to navigate.

