Publishing/Writing: Insights, News, Intrigue

01/07/2012

Barnes and Noble’s Financial Fiasco – Inside the Telltale Numbers


B&N shedding Nook E-Reader and Publishing Arm?

More intrigue in the publishing industry ūüôā

Barnes and Noble had great strength. And they had great insight in being one of the first, if not the¬†first, in recognizing the importance and ¬†impending impact of the¬†e-book … BUT, they did not follow through and¬†let others such as¬†Amazon and Apple¬†capture market share and establish first brands!¬†

Here, then, are the revealing financial numbers inside B&N as reported by JEFFREY A. TRACHTENBERG And MARTIN PEERS in The Wall Street Journal :

Barnes & Noble Seeks Next Chapter

Barnes & Noble Inc. is the latest old-school company to discover how costly it can be to try to reinvent itself for a digital future.

The nation’s largest bookstore chain warned Thursday it would lose twice as much money this fiscal year as it previously expected, and said it is weighing splitting off its growing Nook digital-book business from its aging bookstores.

Over the past 15 years, rapid technological change has transformed the company from a dominant retailing force that left smaller booksellers quaking in fear to a struggling giant grasping for a plan to ensure its long-term relevance to the publishing industry.

Barnes & Noble realized early on that e-books could appeal to consumers, but allowed Amazon.com Inc. to get an early leg up. Now it is locked in a battle with Amazon and another deep-pocketed rival, Apple Inc., to sell both electronic books and the high-tech devices consumers use to read them.

Digital technology continues to roil all manner of once-dominant companies. Former giants such as Blockbuster Inc., Circuit City and Barnes & Noble’s main book-chain rival, Borders Group Inc., have struggled mightily‚ÄĒand in some cases, disappeared altogether‚ÄĒin the face of digital competitors including Netflix Inc. and Amazon. Wednesday’s news that Eastman Kodak Co. was contemplating seeking Chapter 11 bankruptcy protection underscored the severity of the technology threat.

Barnes & Noble’s stock fell 17% on Thursday. The company now may be at its most critical juncture since Leonard Riggio, its chairman and largest shareholder, opened his first store in New York’s Greenwich Village in 1965.

As recently as the 1990s, Barnes & Noble was known as a carnivorous competitor with the power to wipe out independent bookstores with its steeply discounted books and sprawling stores where customers could sip coffee and read in plush chairs. In New York City, the emergence of a Barnes & Noble on the Upper West Side was partly responsible for the mid-1990s closing of the beloved neighborhood bookseller Shakespeare & Company‚ÄĒthe kind of narrative arc that cropped up in the movie “You’ve Got Mail.”

Ironically, Barnes & Noble had been one of the first to recognize the potential of digital books. In 1998, it invested in NuvoMedia Inc., maker of the Rocket eBook reader, and the bookseller actively supported digital-book sales. But in 2003, it exited the still-nascent business, saying there wasn’t any profit in it.

It wasn’t until 2009 that Barnes & Noble re-entered the business, introducing its Nook e-reader. By then, Amazon had been selling its Kindle device for about two years, and was offering best sellers for $9.99, a fraction of what hardcover best sellers are priced at.

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11/04/2011

B&N’s Nook Tablet to Compete with Amazon’s Kindle Fire


"Take That, iPad!"The Amazon and Barnes & Noble¬†e-reader market is morphing into the tablet computer market … and bringing with it advances and features that should have Apple iPads shaking in their digital boots! … AND at a lighter weight and cost!

I just love it when the competitive¬†intrigue goes exponential in a new industry market ūüôā

This from Crain’s New York Business¬†by Matthew Flamm:¬†

Barnes & Noble plays with Amazon’s Fire

The bookstore chain will introduce a new Nook tablet to compete with the e-tailer’s Kindle Fire. The new device will be available on Nov. 15.

The battle for the e-reader market isn’t over yet. Little more than a month after Amazon Inc. announced the launch of the Kindle Fire, its souped-up tablet that becomes available Nov. 15, archrival Barnes & Noble Inc. is getting set to roll out its new Nook.

The Nook Tablet, which will show movies in addition to displaying magazines, newspapers and books, will be introduced to the press on Monday morning at the Barnes & Noble Union Square store. It will be priced at $249, making it $50 more than the Fire, but will offer twice the memory of Amazon’s tablet, according to tech blog Engadget, which posted details about the new device and other updates to the Nook family of e-readers on its site Thursday evening.

In addition to its new tablet, Barnes & Noble has enhanced its Nook Color to include access to the subscription video hub Hulu Plus, and cut its price by $50 to $199. The touch-enabled Nook that launched last May with a price tag of $139 has been renamed the Nook Simple Touch and will be priced at $99. That makes it slightly more expensive than the $79 Kindle, but unlike Amazon’s device, the Nook won’t display ads.

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Related article on Amazon’s¬†Kindle Fire

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