Bookselling

Go Read This | Print as the future of Barnes & Noble | DearAuthor

A good piece, the unspoken element here is that the B&N described here is a much smaller B&N in terms of store and probably in terms of store size as well:

Instead B&N should pour that money into the development of a low cost, high efficiency print on demand machine. The current print on demand technology requires the installation of a behemoth device that currently costs about $100,000.  Have you paid attention to the posts about 3D printing? 3D printers cost about $10,000 and can print out guns, exoskeletons, and even small planes. How is it that it requires ten times the cost to produce something made of glue and paper?
Barnes & Noble’s future is in providing quality physical objects to in store customers.

via Print as the future of Barnes & Noble.

Go Read This | 10 Things You May Not Know About Ebook Prices — LuzmeLuzme

Fascinating piece on ebook prices in the UK versus ebook prices in the US. Makes you wonder whether it was a good thing for Irish publishers that Irish Kindle readers were offered the chance to switch to Amazon.co.uk rather than Amazon.com for their ebook purchases:

In the UK, there is usually a fierce price war going on between Amazon and some new entrant; currently it is Sainsburys, previously it was Sony and Nook. But there is usually someone trying to buy market share by discounting the price. Previously we had the 20p offer from Sony, now 99p seems more common.

via 10 Things You May Not Know About Ebook Prices — LuzmeLuzme.

Some Thoughts On B&N’s Nook problem

The news from B&N’s Nook division is bad:

The NOOK segment (including digital content, devices and accessories), had revenues of $125 million for the nine-week holiday period, decreasing 60.5% as compared to a year ago.  Device and accessories sales were $88.7 million for the holiday period, a decrease of 66.7% from a year ago, due to lower unit selling volume and lower average selling prices.  Digital content sales were $36.5 million for the holiday period, a decline of 27.3% compared to a year ago due to lower device unit sales and lower average selling prices.

via Barnes & Noble Booksellers.

I’ve got more sympathy for B&N than some, indeed I think we should be thanking it for spending so much of its investors money to discover some important things for us.

For a time it seemed to me that Nook was a success. Perhaps that was naive of me, but it seemed like a good match, dedicated book people selling digital content to dedicated book readers. The lurch towards tablets was probably not a good one, prompted as it was by the iPad and the Kindle Fire, it might have seemed like a fabulous strategy, but in truth (but sadly in retrospect) it was too expensive and too long a game for B&N to ever win against its much better funded and positions rivals.

The big question for B&N is whether there is a profitable ebook and digital content business to be pulled from the mess of Nook. The shocking drop in digital content sells in the holiday period is blamed on two things, lower device sales and lower average selling prices.

Taking those one by one the device sales driving content sales suggests two things which would be clear to anyone looking in on Nook. For too long, the digital content side of the business has been a slave to the device side. Too little effort has been made to open content sales to those without devices, too little effort on gaining ground on smartphones and tablets other than Nooks.

If the digital content side is to thrive then B&N will have to encourage readers to buy Nook content everywhere and anywhere they can connect to the web regardless of device and to do so more easily than they currently can (which probably means rethinking the company’s current DRM strategy). In some ways the failure of the tablets (and note, I laud even what might be termed a failure here. B&N has still sold a LOT of devices) probably makes this a likely development anyway. Hopefully it will be a rapid one too.

The second issue is a bigger one in many ways. Average selling price is falling across the ebook space (or, at least, it would appear to be). Only increased unit sales will make up for that. However, if B&N is suffering more from this problem than others, not even unit sales will suffice to push it along.

What’s more, if unit sales don’t increase in line with the market, B&N will begin losing market share (if it hasn’t already). It’ll have to either increase its stock of exclusive content (which sounds like an impossible task given Amazon’s attractiveness in this area) or get market share back through converting customers of one platform to Nook readers, or grow quicker than the market as a whole, or by slowing down the flood of exclusive titles that Amazon is building somehow enabling them to capture some of that value.

I’ve written several times about the value of the KDP platform for Amazon and how valuable such a platform could be to the other ebook retailers yet how each of them in their own way has relatively closed policies with regard to them. Since I first wrote about this back in 2011, only Kobo has opened up in a real way. We are seeing the power of Amazon’s foresight in this space now. The giant added 200,000 exclusive ebooks through KDP in 2013, a perfectly avoidable situation.

B&N succeeded in selling nearly $4,000,000 worth of digital content a week in the holiday season, which is nothing to sniff at. I just hope it can push harder and increase they sales in 2014 opening up to wider audiences and starting to challenge Amazon’s exclusivity advantage with self published authors, that would be good for the wider industry as well as for itself.

Go Read This | An Industry Pining for Bookstores | The Scholarly Kitchen

A fine post about bookstores, print and emerging ecosystems (I’ve written about before about this new emerging value web) by Joe Esposito over on The Scholarly Kitchen:

Trade publishers pine for bookstores.  Part of this is nostalgia, but part of this is an awareness that their businesses were built for one ecosystem and another one is evolving before their eyes.  People may clamor for print (which would reinforce the publishers’ historical position), but the marketplace is increasingly becoming reluctant to provide it.

The simple truth is that with one exception, every link in the value chain must be profitable or the entire chain breaks.  Bookstores are breaking and are taking the entire chain along with it.  Amazon’s hands are outstretched to receive the new customers, to play its dominant role in the new ecosystem.

The one exception?  Authors.  Most authors don’t now and have never been able to live on the proceeds of their work.  A few do, and do so spectacularly.  That spectacle draws authors in:  it’s not the prospect of a good and interesting job but the chance to win the lottery that makes a writer out of a normal human being.  When we express regret at the passing of the old print paradigm, don’t shed a tear for the authors.  Our sympathies should be with the booksellers, who held it all together.

via An Industry Pining for Bookstores | The Scholarly Kitchen.

Go Read This | Sathianathan to head Tesco’s blinkboxbooks | The Bookseller

It will be fascinating to see if big retailers (as distinct from booksellers) can further ebook adoption. I suspect they can and probably will, publishers should be hoping so anyway:

Sathianathan said it was a good time to join Tesco and lead its digital book service. “Technology is changing how people read,” he said. “Offering a digital book service is an example of what Tesco does best – focusing on the customer and anticipating their needs as the market evolves.”

via Sathianathan to head Tesco’s blinkboxbooks | The Bookseller.

Go Read This | The Changes Nook Media Must Make | Mike Cane’s xBlog

I will never understand why B&N has not aggressively grown PubIt beyond the US and even there seems to be content to glide rather than soar. Mike Cane get’s it:

Use those storefronts to pimp PubIT! Get the writers in your inventory, as Amazon has done with KDP.

Hold sessions that teach writers how they can create for and publish their books on PubIT. That’s a strategic advantage that Amazon, Apple, Kobo, Sony, and Google cannot match. No print publisher can match it, either. Why hasn’t this been done from the start? I don’t know. But it needs to be done now. Nook Media can have books that Barnes & Noble will never have — because they are e-only.

via The Changes Nook Media Must Make | Mike Cane’s xBlog.

Go Read This | Bookshop numbers halved in seven years, says research | The Bookseller

Interesting to see the long term trend impact of online sales on bookstores:

According to a study by Experian for The Telegraph newspaper, there are 1,878 bookshops left on the high street today, including independents and Waterstones stores, whereas in 2005 there were 4,000. Separate research by analysts at Mintel suggests UK consumers spent £261 million on e-books in 2012, nearly twice the £138 million spent in 2011, while physical book sales fell from £3.3 billion last year to £3.1 billion this year.

via Bookshop numbers halved in seven years, says research | The Bookseller.