Saturday, January 7, 2012

Quick Take on B&N News

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Saw that Barnes and Noble is thinking of spinning off the Nook Unit from this article. I've been waiting for such an announcement as a possible Harbinger that B&N will head the way of Borders. Borders and Kobo were separate such that it remained even after Border's demise. It later was bought for a very tidy sum by a huge Japanese eCommerce company.

Despite the fact that the nook side of the house is losing rather than making money, it is the only thing that has potential as print sales continue to decline. I think it is a smart move to have a valuable asset protected as the future continues to unfold. Interesting times indeed.

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58 comments:

Bridget McKenna said...

My first thought on reading this news was "What could they possibly be thinking?!" Why would you divest yourself of the one component of your business that has a chance of making it into the future?

In 2000, I worked at Microsoft eMerging Technologies, on Microsoft Reader. Barnes & Noble planned their online bookstore launch to coincide with the release of Reader, which was supposed to be BIG. The launch turned out to be half-hearted in the end, and the downward spiral commenced.

Reader was a great reading experience, much like the free reading apps from Kindle and Nook are now, but with far more features. But its real success would depend on PocketPC and TabletPC, both of which tanked. So MS stopped supporting Reader, and B&N shut the doors on their first ebook store.

They were ten years early to the revolution, and now their thinking is ten years behind. I'm pretty sure they're doomed.

Elizabeth K. said...

That's an interesting point of view. Thanks for keeping us up to date, Robin!
Have a great day!
Elizabeth Kaiser

Hart Johnson said...

Man... this decision to let go of the eUnit really WAS the beginning of the end for Borders--a handing to Amazon of ALL the eBook business. So stupid. And I don't know how B&N can't figure out a better way to do this.

Kirsten Corby said...

Reminds of how Netflix tried to split the streaming and disc-rental business. I'm no businessman, but it doesn't sound like a good idea to me.

Robin Sullivan said...

I'm thinking it is an act of desperation that will allow something to survive the collapse.

Suzanne said...

I've been wondering if B&N's demise is coming down the pike, just from the difference in my books' Kindle v. Nook sales.

Suzanne Adair

kostenloser-counter.org said...

I'm sure the colaps came next time.

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