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Originally Posted by DMcCunney
I don't see much sense in B&N trying to expand B&M operations overseas. I do see reason to try to expand B&N.com and push for global ebook sales.
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B&N has made it clear in the Press release that they see B&M as a fading channel and online, especially for ebooks, as their lifeline to avoid the fates of Blockbusters and Borders.
Going international is a relatively low-cost way to expand the reach of their business, even if all they do is stick to english-language content. (Which they aren't. They have a dedicated Spanish ebook section. Which means that they are position to tap into the growth market to be found in South America.)
Going international doesn't mean replicating the entire corporate structure; all it means (at least for starters) is sitting down with the BPH's subsidiaries for the target market and negotiating rates for their existing catalog in that region. Building off the core catalog controlled by the Publishing Oligarchs is harder because at that point you are dealing with local-only publishers, many of which may not *have* an ebook catalog which is where having an inhouse conversion/publishing unit helps. Amazon has it and with Pub-it, so does B&N.
There are no enforced borders on the internet, for all that some countries/regimes try to erect them. While not entirely friction-free, it *is* the smoothest delivery vehicle for digital content and a company with a thriving, growing operation in the biggest, most active market would have to be downright stupid not to try to leverage those capabilities in emerging markets. Sure, the mainstreaming of ebooks is further along the curve in North america than other regions but that doesn't mean the other markets aren't worth targetting. On the contrary, getting in early in a developing market is a good way to build a foundation for *future* growth.
Money is money regardless of where it comes from and B&N would be well advised to look for ways to service those potential customers, whether on its own, as Amazon is doing, or through alliances, as Kobo is doing. Everything else B&N is doing suggests they understand what they need to survive the mainstreaming of ebooks; going international is just another step in the necessary progression.
Geo-restrictions or not (and "not" is the end game, here) regional-only players are going to be guppies in the ebook sea. They may survive for a while but they will always be at risk of getting crushed by the big boys. Safety lies in size and the orcas of that sea are going to be the global-scope retailers.