Publishing/Writing: Insights, News, Intrigue

07/18/2013

Barnes & Noble is Really an Ally of Amazon


Barnes & Noble stores – lands of discovery for ALL readers – Even e-book readers!

B&N an Amazon ally? Many may not realize this fact; but B&N has helped Amazon succeed and Amazon should show a little respect!

B&N has had a recent spate of bad bumps caused by dings to themselves and the book industry in general — like the declining sales of Nook, the resignation of William Lynch as head of their tech side (due to a $177 million Nook loss), the big six downsizing to five with the Penguin/Random House merger and Apple losing it’s agency pricing case in court.

But, believe it or not, B&N STILL has solid business fundamentals as demonstrated by a 16% increase in earnings (EBITDA) even as sales declined by 5% – 6%.

The possible hidden power of B&N lies in the ability of the re-crowned head of the company (and the one who initially built B&N to a major bookseller chain), 72-year-old Mr. Leonard Riggio — who also loves the physical book stores. He also has a genuine respect for the new digital tech. Point is, he knows how to run a store with ambiance and panache!

Mr. Riggio wants to buy back all the B&N stores and take them private again. I think this is a good start as he won’t have to put up with a lot of investors and boards of directors that might not see his particular vision for the physical bookstore plus amenities that creates an intelligent respite from the cold, harsh world — You just can’t get this kind of ‘creation’ from a tablet.

So, just how is B&N an ally of Amazon? People just love to browse physical artifacts in a warm, restful space (Homo sapiens can’t live on-line ALL the time) — they look at books with neat covers, read the cover flaps and decide they want to buy — either in-store OR very often over their devices. B&N has probably acted as the catalyst for numerous digital buys!

Bookstores are ‘lands of discovery’, even for e-book readers.

So, B&N is still earning and publishers’ net revenue grew $1 billion in 2012, upping their take to $15 billion — much of it due to the wide margins provided by e-books (no manufacturing, no shipping and no remaindering) — If only they could get over the fact that Amazon’s concurrent growth makes them secondary characters in a business they used to control.

Really, there is room for everybody.

David Carr writes this for The New York Times:

Why Barnes & Noble Is Good for Amazon

On Thursday night in Clifton, N.J., Barnes & Noble was a way station, a third place between work and home where people sought respite and diversion. With its high ceilings, wide aisles and a large Starbucks, it is the kind of retail outlet that gives big-box stores a good name.

In one aisle, a father and daughter were having a spirited generational discussion over the side-by-side covers of “The Great Gatsby,” one of which bore an image of Leonardo DiCaprio. For reasons I wasn’t quite clear about but nonetheless found charming, an older couple used a book on vegetarian cooking to cover up a copy of “The Art of Seduction” on the shelf. Nearby, two apparent siblings, one sporting pink hair and the other purple, traded loud opinions over the True Crime display.

Watching the readers lounge in chairs with a view of Route 3, it was hard to reconcile the pageantry of retailing with the brutal recent headlines about the book business.

At the beginning of July, the Big Six publishers became the Big Five with the blending of Penguin and Random House. At the beginning of last week, the chief executive of Barnes & Noble left the company after a grim earnings report that highlighted a failed strategy to have the company’s Nook device compete in the crowded tablet space.

Then on Thursday, Judge Denise L. Cote of United States District Court in Manhattan issued a withering decision against Apple, writing that the company had conspired with the major publishers to fix the price of e-books in an effort to thwart Amazon’s momentum.

So far, what has been bad for the industry has not yet hit consumers directly. If they are among the many millions of people enthralled by CBS’s “Under the Dome,” and decide to read the giant Stephen King novel that inspired it, they can hop on Amazon and buy it with a click for $13.99. Or they could avoid its door-stopping heft and spend just $7.99 for the Kindle version.

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12/17/2011

How To Strengthen Indie Booksellers – And Why We Should!


Strand Bookstore in NY -Still Surviving

More intrigue RE Amazon! AA doesn’t stand for Alcoholics anonymous here (although a drink wouldn’t hurt) … it stands for ‘Aggressive Amazon’.

Since Amazon is gutting the publishing industry by selling e-books (and e-book versions) at or below cost just to sell their other products … it is becoming glaringly clear that something has to be done to stop this future monopoly-in-the-making from becoming the lord and master of writers and publishers.

After all … Amazon’s core mission is NOT the art of writing and publishing … it is selling digital products [that merely deliver the true gold]! Let’s not get the true artists, creators and drivers of this  fine industry back to the slaves they were under the old exploitative traditional publishing system … just with a new digital master. The cart has been before the horse for far too long!

Now there are some out there who think the current developing digital publishing field and Amazon, in particular, is just fine because of the new emerging advantages that have been kind to some … But, BEWARE, if Amazon becomes the complete monopolistic monster it is striving for, the present advantages will vanish.

We must develop and strengthen multiple sources for the selling and distribution of our works.

Jim Milliot of Publishers Weekly has this to say:

The Amazon Workaround

The best way to blunt the e-tailer’s clout is to support a diverse marketplace

Fear that Amazon will come to dominate the bookselling market is nothing new in the publishing industry. But last week, as booksellers continued to decry the company’s price check app (which could be used to access prices on booksellers’ sideline items, like toys and DVDs) and as information about Amazon’s aggressive demands to publishers regarding co-op and retail discounts surfaced (PW Daily, “Is Amazon Pushing Publishers to Brink on Terms, Co-op?” Dec. 15), some insiders began suggesting that the time had come to actively explore ways to lessen publishers’ dependence on the e-tailer. With this in mind, PW asked a number of people in the industry what the best course of action would be. The consensus was that developing and supporting initiatives that would create a more level the playing field would be the best approach to ensure a diverse marketplace.

Publishers readily acknowledge that, after the collapse of Borders, independent booksellers have become more important, and while the indie segment has shown signs of revival this fall, booksellers will still need to work closer with publishers to develop more profitable relationships. The changes that need to be made can’t be around the edges, but need to address the fundamental selling model between publishers and bookstores, something ABA CEO Oren Teicher called for in an address at BookExpo America this spring. Some experiments are already taking place, including extended dating. This would allow booksellers to keep titles on shelves longer and give them a chance to build an audience while helping them improve their always tight cash flow.

Selling books on consignment is another method that some independent publishers are trying, but consignment sales haven’t caught on yet with the larger publishers.

Windowing—offering print books for a period of time before e-books go on sale—while enticing is seen as impractical since it is unlikely that publishers will return to a practice they have already given up. Moreover, there is some thinking that publishers could start charging a premium to customers for e-books before the print book is released, something a sizable portion of consumers said they would like.

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