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I think what hurt them with the music and video stuff is that they never really competed with other big box stores in terms of prices, but simply selection. You wanted something Best Buy didn't carry? Borders might carry it.
B&N was basically the same, but they devoted a much smaller portion of their store to it (basically one section about the size of an old retail music store, while Borders, it was like 1/3 of their giant store)
There also seemed to be a big deterioration about 5-6 years ago. Stores got run down and trashy, the personnel became surly and unhelpful.
And B&N did a really good job with how they integrated the Nook with their retail stores, as well as the whole Nook Color thing. Borders' e-reader seems to have been from a different company, at least there is some separation.
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