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Originally Posted by Andrew H.
*The jury is still out on whether this is a good approach for Amazon. Although Amazon does have a significant music and video presence, which B&N does not.
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Amazon also uses the FIRE as a "trojan horse" storefront for the rest of their retail business; it's not just about books or content. FIRE owners tend to be PRIME customers and PRIME customers are frequent buyers at Amazon and spend significantly more than non-PRIME customers. (No shock, of course.)
One recent quote at Bloomberg's claimed that 25% of FIRE owners hadn't read a single book on the FIRE in the last year. Which means 75% has.
It's too early to say FIRE is or isn't a good move for Amazon but so far it looks to be a(t least a small) net plus.
B&N's digital strategy was going fine until 2011, when it was all about ebooks and magazines. That is their core business and they need to focus on that. They're not Amazon and they're not Apple and they never should've tried to be them.