publishing

Target Douses The Kindle

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Yes, Target is phasing out the Kindle in it’s stores.  Amusingly, the Nook isn’t getting the same treatment.  They site “conflict of interest.”

There is plenty of conflict of interest – Amazon is competing with big stores like Target, Wal-Mart, etc.  This is also a gutsy move as this stuff is popular, so I figure Target has very good reasons.

My takes?

  • I think Target is going to side more with Nook for now.  B&N isn’t a competitor and can be an ally.
  • Remember B&N is also allied with Microsoft.  Keep in mind what this can mean.
  • Note nothing from Wal-Mart.  I still think they might make a low-price play/deal for some media or tablet device – but something like this could mean they seek an ally (and a way to take on Amazon)?
  • This is key as it’s someone striking right back at Amazon.  Others may feel emboldened to follow.
  • I would strongly consider the chance there’s other initiatives we don’t know about.

– Steven Savage

 

Microsoft And Barnes And Noble Team Up On eBooks And Education?

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If you haven’t heard for a legitimate reason, like a coma or temporary death, Barnes and Noble has teamed up with Apple in a ‘strategic partnership” involving e-Books.

Yeah. Process that one for a bit.

Basically there’s a new B&N subsidiary that rolls the Nook and college/educational businesses together. Microsoft invested in it. The results are this could be a separate business, an adsorbed one . . . or one, say, sold to Microsoft. Think about that for a moment.

We just saw two of Apple’s competitors team up with a “daughter” company in powerful markets.

Heree’s your takeaways:

  • I’ve suspected something is up with B&N’s plans in education, and I think this was coming for awhile. Protip: don’t write B&N off, they’re obviously working quietly behind the scenes.
  • This is to Apple’s disadvantage of course, but also note this settled B&N vs Microsoft patent litigation. Apple’s still facing plenty over ebooks, while this clears the air.
  • Lots in all of this is Amazon’s reasonably-priced 300 pound gorilla. A Microsoft-B&N partnership or spinoff is also a challenge to Amazon.
  • B&N supports the more universal ePub format. Just saying’ this could give it a shot in the arm.
  • Job opportunities will clearly come of this. Take a look at the opportunities (if you’re lucky it’s near B&N’s offices in Palo Alto, which is an awesome city).
  • Microsoft can probably leverage this partnership for their e-devices, which are needless to say behind the market.
  • If this is done as a spinoff company it could be huge. Imagine a company created just as a rival to Apple/Amazon, backed by these two. Imagine a company using a universal format. Imagine a company, say . . . I dunno, buying Lulu . . . .

Things just got a lot more interesting in the eBook world.

– Steven Savage

How Amazon’s Success Destroys Itself?

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Earlier, Serdar linked to an excellent article by Baldur Bjarnson (current winner of ‘The Most Viking Name Ever’ six years running) and his fascinating analysis of Amazon’s situation and what they (or someone else) should do.

Of course I say “read the article” but part of why you come here is hard-hitting analysis, deep insight, and guys making fun of people’s names.

His essential argument is that Amazon has a surprisingly weak position, margin issues, technical issues, and strengths with vulnerabilities.  The end result could be a market like the ever-dismalifying comics market in his opinion.  His arguments are pretty solid.

However his most fascinating argument is that Amazon’s integration could destroy it.  As bookstores disappear and less publications are seen, Amazon could end up catering to a specialist audience.  It’s sad to say, but people already aren’t reading enough books anyway (in my opinion), and I can see a case where e-Books end up having issues finding audience due to lack of awareness and competition that never existed before.

I’ve chewed over this idea as it seems to fit some other models – extraction models.  Amazon runs on pretty tight margins (if not “no margins” in some ways).  This could be seen like any extraction industry, or even as a flashback to the “getting eyeballs” from the pre dot-bomb day, neither of which are exactly encouraging metaphors.  There’s already plenty of competition in the form of open formats or even that clunky but beloved format PDF.

So after reading this article, here I sit, teetering on the abyss, and wondering if Amazon actually will turned out to have messed up.  Having been through many Comic Meltdowns, the metaphor sits in my mind uncomfortably – weird variants, cool promotions, hopeful indies, price arguments, and even a narrow channel (Diamond).

– Steven Savage