coming up next, it is a war of words between amazon and hachette.hear from one author who has decided to take a public stand against amazon. ♪ >> this is "taking stock" on bloomberg. i am pimm fox. the ongoing dispute between amazon and hachette is quickly escalating with both sides only for support from readers and authors. a group of more than 900 authors. they published a letter that said that amazon is unfairly holding their work hostage by refusing to sell books. amazon formed their own group saying that hachette is overpricing the e-books. susan shapiro is the author of eight books and she joins me now. thank you for being here. what is the purpose of authors united? what is the goal? >> amazon made a big mistake and it is not fair to any of us and every author and editor and agent i know in the entire country pretty much as upset about this. it is not playing fair and we want amazon to play fair. click you sadist because they're not offering books that are published by hachette at a time and place that customers went month them? >> right. it

hachette is the first step. this will happen with other publishers. publishers said that we would stand united. our books should not he held hostage. what is so bizarre is that jeff bezos come he went to princeton. his wife is a novelist. he loves books. we want him to play fair. >> in the situation regarding hachette, why wouldn't they reach into their pocket and lower the price of the books for amazon and make up the difference of the authors? it was an unfair negotiation tactics. thread and then make good on the threat and punish a thousand authors. amazon did a very extreme, nasty, angry, down and dirty tactic. we want to go on amazon. you go to amazon and see if your ratings are that are. we love getting our books in 24 hours. we need to be working together. >> what about the difference between e-book and an actual physical book? like that is where the problems started. worth 2690 five. those are the royalties. divided.g was being all of a sudden, e-books came around. some people are getting in at the same moment. really, the profits and publishi

we're in a situation where you say hachette has not returned your calls for comment.is usually the other way around. hopefully this will put some pressure on hachette to come to the table and negotiate in good faith because it sounds like they have not been doing that. >> mark, amazon wants 30% and it also wants hachette and the authors to split the remaining 70%, which is different from the way it is today. i believe authors get 25% today. can you explain how this is different and what amazon is proposing and what authors actually take away when they sell a book today? >> some of what amazon is proposing here is a disingenuous smokescreen. if amazon really wanted to offer consumers lower prices, it would be doing other things differently. right now amazon for self-published authors penalizes the author if they price the book under $2.99. you only earn 35%, rather than 70% list. right now amazon makes it really difficult for authors to price their books at free. the only way to price your book at free is to enroll in their exclusive k.d.p. select program. i don't thin

the battle over e-book prices with amazon and hachette group takes a new turn.zon said the company's key object sieve to lower e-book prices. arguing if the books were priced at $9.99, there would be more room for sales. what does the publishing industry and authors have to say about the proposal? i spoke with mark coker. and a self-published author. i started by asking hugh who has been a supporter of amazon throughout this dispute what he thought of the company's latest response. > i'm happy that amazon is finally talking about what their negotiation terms are. it confirms everything i suspected just from watching the company over the years and dealing with them as an author and publisher. they went through this in 2010, fighting for reasonable e-book prices. back then the response from publishers was to form a cartel and collude with their supposed competitors in order to to artificially raise the prices of e-books on readers in order to protect their legacy print industry, or to make as much money as they possibly could off of readers. i think it has been to

they decided to punish the hachette authors. they did not ask for.n do nothing about it now. is threatening and intimidating behavior. there is no need for it. critics are authors happy with the way the publishing industry works now? ever happy with any publishing situation. people published by amazon have complaints, people published by the big five have complaints. in this case, amazon is pushing for a very low price on e-books, which devalues the product and it also ignores the fact that what makes a book valuable is intellectual effort. that goes into it, whether it is in digital form or book form. >> this is going to continue to play out. .hank you so much coming up, day one first rent cost new ceo. ♪ >> bloomberg television is on the markets. futures are climbing on monday morning. some concerns about iraq are being overshadowed by easing concerns in ukraine. up, vladimir putin gushes over exxon after giving the u.s. oil company the ok to start an oil well in the arctic. another note, rory mcelroy is on fire, winning the pga championship weeks

disney, it is a tactic the company has used before in other negotiations disputes like publisher hachette, now that spat has gone public. >> they are stephen king are best selling authors, those who signed their name to the ad in "the new york times", criticized amazon for delaying book shipments and removing the option to preorder certain titles. >> what is your take on these tactics? how would you characterize them? >> well, it seems small-minded and nasty. >> best selling authors like stephen king and pulse pulitzer prize signed the letter. >> you download this sheet of stickers, it says i didn't buy it on amazon. >> peter hildick smith is the president of book research firm codex group, he says amazon may plan to use tactics like delaying deliveries to influence the larger retail i have. >> they are using the tools they have earned and the point is at what point are they using those tools a little bit too aggressively? and openly, again, it is about maintaining a balanced market. >> ]á where consumers benefit the most. >> friday amazon released a statement saying e books priced at $9.

. >> amazon has taken a similar approach in its ongoing feud with publishing giant hachette over the they have stopped sales on their website, slowed shipments down and cut discounts. that's gotten a lot of authors upset and worried about what will happen. >> sunday's edition of the "new york times" features a full page ad with a letter blasting amazon's tactics as retaliation claiming the company is inconveniencing and misleading its own customers with unfair pricing and delayed delivery. the letter was signed by more than 900 writers including industry heavyweight stephen king, john grisham and "hunger games" author. even-steven colbert whose own books were published by hachette has joined the war of words. >> because of amazon's stonch-of- scorched tactics more people screwed than in "50 shades of grey." >> reporter: amazon book, many released at $14.99 and $19.99. the company says that's unjustifiably high. pointing out with ebooks there's no printing, warehouse cost, transportation cost. amazon claims cheaper ebooks are good for everyone's bottom line including the customers. fo

like some testing and digital analytics on steroids. >> i'm curious to hear your thoughts on the hachettespute -- literally calling on authors to contact the publisher, publishing his e-mails will stop you have authors as famous as malcolm gladwell and stephen king signing an anti-amazon petition. it's so funny because we have talked to authors on both sides of this dispute and the bottom line is amazon says e-books should be cheaper and publishers are driving prices up. you have authors loyal to publishers and some on the other who want to sell books. >> there is the tension. it breaks down at the idea of even publishers advances. most publishers don't earn back the advance they give up to authors. the economics of the book publishing industry have been published for so long. this represents a rearguard attempt to approach those and one way or another, it's going to break down. they have to break down because consumers wanted to break down. they don't see the rationale for having e-books be the same price as print books, even if it's not just about the cost of production. that doesn't wa

. >> hachette is the publisher of ryan's book "the way forward. " amazon wants to use its market heft to get ha shell to lower e-book prices. hachette says this hurts authors, bookstores and doesn't take into the costs that go into creating books. susan? >> let's check in on california. the stay is suffering a major drought, and companies are finding new and innovative ways to cash in. jane has the story. >> reporter: you know, water agencies are giving away tens of millions in rebate for people to pull out their turf and put in fake grass behind me. this was put in by smart grass, but this stuff isn't cheap. they're also looking for less expensive ways to still look lush. . drew mcclellan started lucky lawn.com, and drew realized there aren't any other companies in southern california offering the service. the ingredients for these products have groan better over the year. they last longer and less toxic or nontoxic. the average house is $175. and he says business has doubled in the last few weeks. >> it's kind of sad. it's not good for everybody else, but for the grass business, it'

the dealers are installing revised software in the cars to fix this amazon and publishing house hachette been fighting over how amazon prices the retail giant says since e- book are less expensive to produce and have no resale value, it should pay less for hachette counters that amazon is not properly pricing the books. now both sides are encouraging readers to write the c-e-o of the other to help end the coming up on the kron four cleanup efforts still underway in hawaii from tropical storm iselle. take a look at some of the here's some of the pictures from the damage the storm left behind. the 42 foot sailboat "walkabout" send out a distress call saturday morning.saying it was taking on water. the container ship reached them crews are waiting until dawn to get the three people onboard off the stricken boat. because doing so in the dark on rough seas would be too dangerous. while the storm has passed.it's left behind strong winds and 15- at least 33 people in tokyo have died of heatstroke this summer. nearly 80 percent were aged 65 or older. most of them had no air conditioning in their

hachette. hachette is a great book.'t like seeing that word in the teleprompter, though. >> really? >> i saw a big ad yesterday on this whole dispute. they're arguing. i didn't read the whole thing. you know, is it about books? >> yes. it's about the pricing of books, the pricing of e-books. >> they're not worth that much anymore, are they? >> i think it's about who gets to decide what the price of the e-books should be. >> a group called authors united ran a two-page ad in "the new york times" -- oh, that's the one i saw. i was reading "the new york times" yesterday. that shows you what my life has kmd to. signed by 900 writers. huh, huh? >> what exactly happened on vacation? >> yeah, exactly. i was in a place -- look, if i go to stockholm syndrome in georgia, i'm moving further. i'm moving further right, believe me, and i do have a little bit -- anyway, including stephen king. the ad criticized amazon for halting orders from some hachette orders and slowing others. amazon's books team posted a message online making it

amazon is asking to write to hachette's ceo to end the standoff. are you familiar with any of these? >> no, but disney's one of my favorite stocks in the year, since i went to china in spring and realized disney's opening up in pudong and that will actually celebrate disney's growth around the world. disney's not just about its latest blockbuster film. it's about making a serious impact in the chinese market, which i'm quite optimistic about. >> you have a good point there. and continuous expansion plans in china as well, or looking at potentially expanding further, i saw, as well. >> yeah, well, the theme park is in an area which is massively connected to a huge population in the area and it ought to trigger broader growth in the whole chinese market. maybe from there on into the whole east asian market. disney's a very good story indeed, i think. >> okay, well, there you have it. but still, nevertheless, some head-knocking with amazon. >>> netflix subscribers have doubled in the uk over last year to 3 million households, thanks to hit shows like

amazon: authors to literally e-mailed the ceo of hachette./ at the same time, you have authors as famous malcolm gladwell and stephen king mounting an anti-amazon to petition. we talked to authors on both side of this dispute. shouldis saying e-books be cheaper and publishers are driving prices up and then you have authors who are loyal to publishers and some want to sell books. >> and there is the tension. at the idea of even publishers advances. -- most of teachers and the system has been broken for some time so this represents a rearguard attempt to support those broken economics in the publishing industry. one way or the other, it is going to break down. it has to because consumers want to break down. they have no rationale for e-books being the same prices print walks. -- printed books. . it doesn't watch when you are a consumer. i think this way very difficult to hold back the tide. >> thank you both very much. we'll continue to watch others plays out. it is that time of year again -- shark week kicked off on the discovery channel and we go behind-the-scenes with one of the creator

aggressively here but at the end of the day, they will come to an agreement with amazon which compares to hachette they make or break deal for them and the whole publishing business in general. amazon has a tremendous amount of leverage there. disney has more leverage some of publishing sector but it is a deal they want to get done. ask what kind of money is involved? >> paul is right that it is make or break. they get one bite at the apple in their core businesses selling books when published in the studio's core business is the exhibition of film. you are probably talking in the $8 billion to $10 billion market, amazon probably has 10% share. disney is probably 15% or 20% of that will stop we are talking about pre-orders only -- maybe $5 million. probably amazon is leaving a million dollars or $2 million on the table and getting a hundred times that in free publicity on this show. but what about the stock of amazon.com. are they going to be able to increase their margins? >> i have a neutral rating because no matter what they do on the gross rough outline, and they are generating a ton of gross

they are also in a similar fight with hachette.t slowed down the delivery of those books. >>> this next story is for any pet owner. pretty soon there will be a new way for you to tell when your pet is sick. take a look, through a series of sensors the pet pace collar monitors how your dog or cat is feeling. it measures the animal's temperature, pulse and breathing rate as well as their activity patterns and even the number of calories that they have burned. if anything is out of the ordinary, you're going to get a text or e-mail about it. the smaller collar, as it's called, should hit store shelves later this year. it will set you back about $150. >>> and right now people are gathering in ferguson, missouri, to remember a man killed by police. police are keeping a close eye on the situation because of rioting that happened overnight. officers used tear gas to break up the crowds. >>> also coming up, storm team 4 meteorologist tom kierein is back to let us know when and if the 90s will return to our area. >> marie and donnie. >> don

. -- this hachette dispute has been going on for months now. >> you have someone with a law cold on thestribution, which is amazon and you have a relatively small number -- a large number of content reducers going through various publishing houses. focus through those pointed each of those joke points create people who think they have a lot of power in terms of his tribute in and you get this classic game theory problem where everyone feels like they have an awfully power and can lock the other side out, so they stay out for a long time. it going to be interesting to watch -- my take is this is going to cause a push toward more digital distribution from disney and others as they say i don't want someone standing between me and my consumers. >> in this case, it's amazon making the move will stop however, disney is known for pulling its own content. i tried to be -- i tried to buy "the lion king" the other day. i would have paid $25 for it but it's not on amazon, it's not on my cable on demand. from the point of view of l.a. in the people making this content, who has the power? always pra

but that's if your book is not a huge popular -- >> so they're trying to push hachette's market?ey want to lower the price to $9.99 and be able to control the price and not let hachette control the price. the second piece is they want to take a bigger piece of the actual sale from hachette. >> this is part of a bigger story. >> those are the two issues. >> you're in the world of entertainment as well writing the book and working on some movies and stuff. we sort of straddle the world of entertainment versus business. and when i look at bette midler who tweeted out like a couple weeks ago 4 million plays on pandora, my check was $112 or something like this. right? we've had authors -- we've had song writers on who've said, i've had 10 million plays on whatever it is and i got a check for 50 bucks. like we actually don't forget we actually have to make a living. this is our job. i'm a 40-year-old writer -- >> books and everything else are going to turn into music. >> it's going to turn into music. >> but people want everything to be free. all you young folks out there who got up ea

amazon used this tactic with warner bros., and the companies involved in a dispute with hachette bookslines is expected to resume trading in less than an hour after shares were suspended on friday. the carrier is preparing to go private after struggling with losses for years and years. let's bring in southeast asian correspondent haslinda amin. everybody knows this to be true. it is a mammoth task for malaysia airlines. well, $430 million buyback plan, that is just a start, and then comes the pain. stearate it will be a huge challenge, given that malaysian airlines has suffered a huge blow to its image, back-to-back disasters. the prime minister acknowledged it. he said, piecemeal changes will not work. it requires an overhaul. details will be released by the end of the month, but we know khazanah, a major shareholder, 69% ownership, it is at the final stages of the restructuring plan. let's take a look at the shares. they are down 23% year to date. khazanah will pay shareholders a 13% premium for the buyback. forget about a higher offer. maybank says second-quarter results will be "aw

after taking on warner brothers and publicer hachette, has bezos met his match?s anything but a typical day at the amusement park, speaking of which, for riders stuck on a roller coaster in maryland for nearly five hours. despite incidents like this, theme park attendance has been red hot. coming up, why trips to america's playgrounds could mean the economy is doing better than you think. we'll be right back. in new york state, we're changing the way we do business, with startup ny. we've created tax free zones throughout the state. and startup ny companies will be investing hundreds of millions of dollars in jobs and infrastructure. thanks to startup ny, businesses can operate tax free for 10 years. no property tax. no business tax. and no sales tax. which means more growth for your business, and more jobs. it's not just business as usual. see how new york can help your business grow, at startup.ny.gov that's why i always choose the fastest intern.r slow. the fastest printer. the fastest lunch. turkey club. the fastest pencil sharpener. the fastest elevator. the