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Old 08-13-2010, 12:50 AM   #1
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Join Date: Feb 2010
Device: Kindle 2, Kobo, iPad, Nook
Kobo Investment Ups Loss at Indigo: A good sign?

I'm kind of surprised that this article wasn't covered here (dated Aug 9th).

Basically, revenue up $10M in Q1, profit down $5.3M in Q1 due to 'heavy investment' in the Kobo e-bookstore and (presumably) the rollout of the Kobo reader. After applying some oversimplified math, investment in Kobo (e-bookstore and reader) is costing Indigo at least $10M/Q! Is this a good sign, or will the losses continue at the hands of Bezos?

Indigo has done a great job in spinning off Kobo (reader and e-bookstore) in such a short timeframe. Book retailers realize how critical it is to be a player in the digital market, but only a few will be able to capture a significant share of the market. Let's hope they can build on their e-bookstore and reader before the losses are too great.

Will Kobo be forced to break the $100 e-reader barrier sooner rather than later, or be dropped under pressure from Kindle? What is the point of having an e-reader anyway when profits are cut razor-thin and the reader doesn't create a significant allegiance with the Kobo e-bookstore (like the Kindle)?
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