Just got this alert from the Authors Guild:
On Monday, Amazon CEO Jeff Bezos unveiled Amazon's Kindle 2 e-book reading device at the Morgan Library in New York. Most of the changes from the first version of the Kindle are incremental improvements: the new Kindle is lighter and thinner, for example, and Amazon eliminated the scroll wheel. One update, however, is wholly new: Amazon has added a "Text to Speech" function that reads the e-book aloud through the use of special software.
This presents a significant challenge to the publishing industry. Audiobooks surpassed $1 billion in sales in 2007; e-book sales are just a small fraction of that. While the audio quality of the Kindle 2, judging from Amazon's promotional materials, is best described as serviceable, it's far better than the text-to-speech audio of just a few years ago. We expect this software to improve rapidly.
We're studying this matter closely and will report back to you. In the meantime, we recommend that if you haven't yet granted your e-book rights to backlist or other titles, this isn't the time to start. If you have a new book contract and are negotiating your e-book rights, make sure Amazon's use of those rights is part of the dialog. Publishers certainly could contractually prohibit Amazon from adding audio functionality to its e-books without authorization, and Amazon could comply by adding a software tag that would prohibit its machine from creating an audio version of a book unless Amazon has acquired the appropriate rights. Until this issue is worked out, Amazon may be undermining your audio market as it exploits your e-books.
Read the full Alert here.