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Old 08-20-2012, 08:12 AM   #1
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B&N Nook coming to the UK

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Barnes & Noble, Inc. (BKS), the leading retailer of content, digital media and educational products, today announced that its award-winning NOOK reading experience and leading digital bookstore are coming to the United Kingdom this autumn through a new www.nook.co.uk online storefront, marking the first time the company will expand its business internationally. The world’s largest bookseller will also offer its highly sought-after NOOK digital products and content to UK reading and entertainment lovers through partnerships with leading retailers expected to be announced shortly. These well-known UK partners are expected to support the NOOK offering there through both established physical and online channels.
http://finance.yahoo.com/news/barnes...113000173.html
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Old 08-20-2012, 08:16 AM   #2
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Only two years late!
At least the Microsoft money is paying for something useful...
Let's hope there's still room in the UK market for them..
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Old 08-20-2012, 09:36 AM   #3
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The expansion was a requirement of the Microsoft agreement.
Launching in autumn and they still aren't ready to name retail partners?
Nothing about retail bookstore partnerships, so this might just be an announcement that PC World/Currys and big supermarkets will carry the readers.
They should have a market advantage with the Nook Glowlight though.

Last edited by murraypaul; 08-20-2012 at 09:54 AM.
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Old 08-20-2012, 09:46 AM   #4
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Originally Posted by murraypaul View Post
The expansion was a requirement of the Microsoft agreement.
Launching in autumn and this still aren't ready to name retail partners?
Nothing about retail bookstore partnerships, so this might just be an announcement that PC World/Currys and big supermarkets will carry the readers.
They should have a market advantage with the Nook Glowlight though.
There aren't many bookstore chains left in the UK. Waterstones has already announced it'll sell Kindles, WHSmith is selling Kobo readers and books. I think Blackwell is the only chain left, but they tend to be university book shops, from what I've seen.
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Old 08-20-2012, 09:48 AM   #5
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Only the UK? I could never understand B&N, especially since Amazon doesn't have a problem selling all book formats worldwide (with only geo-restrictions on some digital books).

And LOL to B&N being the "the world's largest bookseller".
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Old 08-20-2012, 09:57 AM   #6
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From the huge long list of warnings at the bottom of the article:
Quote:
Our forward looking statements relating to international expansion are also subject to the following risks, among others that may affect the introduction, success and timing of the NOOK e-reader and content in countries outside the United States: we may not be successful in reaching agreements with international companies, the terms of agreements that we reach may not be advantageous to us, our NOOK device may require technological changes to comply with applicable laws, and marketplace acceptance and other companies have already entered the marketplace with products that have achieved some customer acceptance.
At least they have noticed that they are years behind Amazon!
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Old 08-20-2012, 10:53 AM   #7
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Hmm, that sounds like UK-Nooks may not use the ereader DRM but rather be pure Adept devices.
Is there some euro law that might block their use of customer data as part of their DRM encryption?
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Old 08-20-2012, 11:41 AM   #8
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Quote:
Originally Posted by murraypaul View Post
The expansion was a requirement of the Microsoft agreement.
How do you know that?
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Old 08-20-2012, 12:27 PM   #9
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How do you know that?
Because I read it in the agreement.
The actual geographies that Microsoft require Newco to expand to are redacted, but not the existence of that requirement, and I think it is guaranteed that one of those geographies would have been the UK, and likely that the UK was (one of) the priority geography(ies) specified in subsections a) below, as the largest English-language eBook market after the US and Canada. (Possibly bigger than Canada?)

http://www.sec.gov/Archives/edgar/da...191/ex10-2.htm
Quote:
1.3 NewCo Responsibilities. NewCo will:
[...](f) expand the geographies and catalog of the NewCo Store pursuant to Section 5;
[...]

Section 5. Geo Expansion

5.1 Publishing Services Platform. NewCo will use good faith efforts to make the Publishing Services Platform available in the Geos in which developers can submit applications to the Windows Store as of the Effective Date (currently[***]) in compliance with applicable laws (including applicable tax laws) in accordance with the following schedule:

(a) in [***] by [***];

(b) [***], as selected by NewCo, of such Geos by [***];

(c) a total of [***], as selected by NewCo, of such Geos by [***]; and

(d) a total of [***], as selected by NewCo, of such Geos by [***].
[...]
5.4 Commercial Content. NewCo will use good faith efforts to enable the purchase and consumption of market-specific commercial Reading Content from the NewCo Store by entering into Material Commercial Content Agreements for each of the Priority Geos in accordance with the following schedule:

(a) in [***] by [***];

(b) any [***], as selected by NewCo, of the following [***] Geos by [***] (such [***], the “Initial Commercial Geos”); and

(c) a total of [***], as selected by NewCo, of the Priority Geos by [***];

(d) a total of [***], as selected by NewCo, of the Priority Geos by [***].
The “Core Geo Commercial Content Condition” means that NewCo has entered into Material Commercial Content Agreements for each of the Initial Commercial Geos, and the “Core Geo Trade Book Condition” means having Material Trade Book Agreements in the Initial Commercial Geos.
[...]

7.2.3 Deferral of Advances. Microsoft may defer payment of [***] of the amount of any and/or all Advances that have not yet been required to have been made under Section 7.2.1 if:

(a) the Core Geo Trade Book Condition is not satisfied before [***]; or
[...]
[Edit: I also think it is possible that part of Amazon's reasoning for signing Waterstones up to distribute Kindles was that they knew B&N would have to enter the UK market, and wanted to make that more painful. Successful market denial tactic for little effort]

Last edited by murraypaul; 08-20-2012 at 12:35 PM.
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Old 08-20-2012, 12:32 PM   #10
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Hmm, just realized: Windows 8 launches in october and Microsoft is bundling the Nook software with Win8 and the tablets. October is actually as late as B&N could launch the UK ebookstore and not mess up Microsoft...
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Old 08-20-2012, 01:36 PM   #11
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After reading this, I was hoping they would offer us their tablet. But it looks like we'll only be getting the eink devices.
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Old 08-20-2012, 01:58 PM   #12
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Quote:
Originally Posted by murraypaul View Post
Because I read it in the agreement.
The actual geographies that Microsoft require Newco to expand to are redacted, but not the existence of that requirement, and I think it is guaranteed that one of those geographies would have been the UK, and likely that the UK was (one of) the priority geography(ies) specified in subsections a) below, as the largest English-language eBook market after the US and Canada. (Possibly bigger than Canada?)

http://www.sec.gov/Archives/edgar/da...191/ex10-2.htm


[Edit: I also think it is possible that part of Amazon's reasoning for signing Waterstones up to distribute Kindles was that they knew B&N would have to enter the UK market, and wanted to make that more painful. Successful market denial tactic for little effort]
It does not preclude that B&N was already considering the expansion before Microsoft came along. We heard rumours about B&N going overseas way before MSFT got involved, and given that not much time has elapsed since the MSFT partnership was announced, I would say that this UK business was in motion way before MSFT showed up.
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Old 08-20-2012, 02:28 PM   #13
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It does not preclude that B&N was already considering the expansion before Microsoft came along. We heard rumours about B&N going overseas way before MSFT got involved, and given that not much time has elapsed since the MSFT partnership was announced, I would say that this UK business was in motion way before MSFT showed up.
Shrug.
They certainly having been rushing to get anything done.
I didn't say that they wouldn't have done it without the MS deal, just that they have to do it now that the deal is in place, and may have been pushed by a deadline.
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Old 08-20-2012, 02:30 PM   #14
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After reading this, I was hoping they would offer us their tablet. But it looks like we'll only be getting the eink devices.
Would you want to try rolling the Nook Tablet out in a market where the Nook brand has no value, and the Nexus 7 is already on sale, along with all the different Samsung lines?
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Old 08-20-2012, 03:45 PM   #15
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Is there some euro law that might block their use of customer data as part of their DRM encryption?
There is a data protection directive (the UK law is the Data Protection Act: DPA). I don't think it would outlaw using credit card details as part of the DRM. Google "information commissioner" for more info on the DPA.
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