Indie Authors, Gamers, and Monopoly Censorship

Book publishing and game news journalism are both being disrupted by “user generated” platforms that have consumer-side economies of scale.

For book publishing, two of these platforms are Kobo and Amazon Kindle. The users/producers of these services are called “indie authors.”

For game news publishing, two of these platforms are Twitter and Reddit. The users/producers of these services are called “gamers.”

While these services are united in their hostility to other types of publishing, each still faces competition from other “user generated” platforms with consumer-side economies of scale.

For instance, in book publishig, Kobo’s President Michael Tamblyn is warning “indie authors” that Amazon Kindle’s interest is not theirs, and Amazon Kindle could use market power to take away their profits and silence them.

Meanwhile, in game news publishing, this form of censorship has been observed. Early on in the #gamergate scandal, reddit began censoring discussion of collusion between Vox Media, Gawker Media, and game developers. This lead to the discussion to shift to twitter, a rival platform.

The power that monopolies have to extract all profits and control the agenda is called wholesale transfer pricing power.

If Amazon achieves a monopoly in “indie author” book publishing, they would have wholesale transfer pricing power, be able to strip all economic profits from indie authors, and censor indie authors at will.

If Reddit would achieve a monopoly in “gamer” news publishing, they would have wholesale transfer pricing power, be able to strip all economic profits from indie authors, and censor gamers will.

The only difference is that this shift from command-and-control to user-generated publishing is more advanced in game news than it is in books.

The today of gamers is the tomorrow of indie authors.

That’s why the gamergate scandal is the biggest news in publishing.

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