The Bookseller has news and comment about Amazon.com's move into the publishing business via their new CreateSpace print-on-demand project:
Comment online has suggested that the move could knock publishers and other literary third parties out of the equation. [Timo] Hannay wrote on his Nature blog: "Amazon becomes the ultimate clearing house for books of all kinds (and much else besides), with none of the traditional middlemen getting a look in. Genius. If you're an agent, publisher, wholesaler, or retailer of books and you haven't just soiled your undies, then you don't understand what's going on."
The production price per unit is still significantly higher than if you use Lightning Source (around double, though depending on page count), but this certainly looks like a step toward Amazon becoming an 'all-in-one' book business. And no doubt many self-publishers will still find the terms attractive, not least due to the 30% take from Amazon (vs the standard book industry 50 - 65%) , the lack of setup fee/ISBN requirement, and more obviously the ease of selling and postage through Amazon's system. In fact, if anybody is going to 'soil their undies', I'd imagine it would be Lulu.com - CreateSpace appears to offer the benefits of Lulu at lower price and with better market access.
