Recently, when Kindle Unlimited was introduced in Japan then it gained immense popularity and after Amazon was unable to pay for a large amount to the publishers it removed various titles and readers suffered because of it.
Recently Kindle Unlimited all-you-can-read subscription service was rolled in Japan and has reached a tremendous success since its launch. And Amazon decided to remove more than 1,500 titles from the service and this led to the anxiety among the Japanese publishers.
Kindle Unlimited started in Japan in the month of August and offered hundreds of thousands of Japanese and foreign titles for about ¥980 which makes ($9.60).
Amazon signed a deal with the Japanese publishers to attract their customers. As per the deal, Amazon had to pay Japanese publisher a premium when customer read 10% of their book. The main goal of a deal was to get publishers to offer their best content.
Earlier, this worked completely fine and it was easy for a reader to go through 10% of the book or magazine but suddenly Amazon found itself in a situation where they have to pay a large amount to the publishers this was said by a person at one publisher.
According to a person at another publisher said that Amazon said that it has reached its budget limit for the payments to the publishers and want to revise its contract with the publisher.
However, Amazon has declined to these reasons for changing its content lineup.
Amazon did not make any comment on the specific reasons for the changes to its content lineup, but it said the situation was normal for an e-book subscription service.
Amazon spokeswoman said that when it comes to books, movies etc .It is liable that content rotates in and out of the catalog. She added that on Kindle Unlimited catalog is the part of their larger bookstore where customers can purchase the title at a good discount.
The bad publicity of Kindle Unlimited can hamper the image of Amazon in the global markets. However, Amazon’s Japan business accounts $8.3 billion sales in 2015 which is 8% of the global trades.
Back in August, antitrust authorities inquired Amazon’s office in Tokyo over the allegations that they force retailers to reduce their prices Amazon so they can get an advantage over other e-commerce sites. However, Amazon has declined these allegations.
The removal of titles from Kindle unlimited has upset the publishers and they said they don’t want to take the blame on them for removing the titles.
Kodansha Ltd., a Japanese publishing company, said that it was the one side decision made by Amazon and it was a major drawback for the subscribers.
This is not the first time that Amazon came in the light but Last year the European Union opened a formal investigation into Amazon e-book business to look that whether it is using its market power and forcing publishers to accept their terms and condition and that harmed purchasers of the ebook. In a context of this Amazon said that the agreement was in the best interest of the readers and purely legal and it cooperated fully during the investigation.