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Originally Posted by fjtorres
Despite B&N introducing their Glowlight Nook. 
Dragged down by the BPH moaning most likely. |
No, it's because everyone realizes that with Amazon back in control of final retail pricing,
B&N is dead meat.
B&N has pulled in over $5 billion in revenues every year since 2003. Yet their annual net income has declined every year since 2007, and despite picking up business from the demise of Borders, they lost $74 million last year -- in part due to spending so much money making and marketing the Nook.
Amazon has already announced they intend to lower ebook prices. If B&N matches them, their margins will suffer, net income will continue to fall, and they'll be in worse shape -- while treading water in terms of market share. If they can't match Amazon on price, their market share will erode, which will also deteriorate their bottom line.
Either way B&N is screwed, and everyone knows it.
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Originally Posted by fjtorres
Trying to portray the settlement as a disaster is not going to help the stock of publishers or retailers. They'd better get to that seventh stage fast.
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It's too early to know if it's a "disaster" for everyone. Apple definitely has the wherewithal to match Amazon on price, though not necessarily the will; some dude in a garage could invent "Spotify for eBooks" and cut into the ebook biz; Amazon could be a relatively benevolent monopolist, at least until someone or something threatens that monopoly.
However, it's undoubtedly a disaster for B&N. If they're lucky, someone (read: Google) will buy their Nook division before they declare bankruptcy.
Who's up for a B&N dead pool?
