Quote:
Originally Posted by ProfCrash
So Borders is a partial investor in the Kobo, as I understand it not a majority owner and possibly somewhere between 10-20%.
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Correct.
Borders' approach to eBooks is, effectively, the same as it was to online sales; to outsource it. (Like, say the eyeglass stores or clinics at some WalMarts). This is what retailers do when faced with niches they have no desire to address directly; it's a form of spec-sheet marketing, really
The main difference between their deal with Kobo and their infamous deal with Amazon is that Kobo needed cash so they got to buy a chunk of equity in the outsourcing partner.
And the current Kobo reader sale?
I find it noticeable that the 4-day sale is running towards its 8th day and wouldn't be shocked to see it run 12 or 16 or whatever it takes to clear out their stock.
In other words: its a liquidation sale. Obviously they miscalculated how many Kobos they'd sell for the holiday season and are now desprerately trying to get rid of the excess inventory. Because, unlike their publishing partners, Kobo has a way to force payment for that inventory.
Edit: BTW, Books-A-Million is also outsourcing their ebook customers. To B&N. BAM seems to be a better-run operation than Borders but the move doesn't exactly inspire much confidence for their future growth.