Quote:
Originally Posted by ZodWallop
Already I'm not sure how much attention you've really paid. Say what you want about Nook software, their catalog, etc. If Nook has a high point, it is their hardware..
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You misread the "generic China, Inc" hardware term.
What it means the reader is an off the shelf design they add Nook software from India and silkscreen the brand on.
It isn't a matter of quality but of involvement.
Earlier, Nook used to design the feature set and software themselves so they controlled what made a Nook "Nook". Now they just write checks. Incrrasingly smaller ones, at that.
As for the Apple comparison, Microsoft isn't going to come in throwing $200M cash infusions togive life support to a competitor. First, becase they're not competitors and second because they already tried and B&N failed to live up to their end of the deal.
Again: how about listing who is going to throw money at a fading book retailer?
Who *has* the money and will?
Nobody offered much for B&N pre-crisis. Indigo isn't rushing in (did tbey even finish the one store in New Jersey?)
I'm not playing taps; just pointing out they are facing a bad situation at a bad time in a bad business.
I do think taps will come soon enough because the price the current owners paid was less than market value for the warehouses. Nook, B&N.com, and the storefronts actually reduced the purchase price.
Back in 98, when B&N was riding high, the offered to buy the Ingram warehouses for more than what all of B&N cost now.
https://www.publishersweekly.com/pw/...-for-600m.html
https://www.cbsnews.com/news/barnes-...tt-management/
$600M vs $476M.
The Ingram deal was blocked because it would've given B&N an effective monopoly on pbook distribution. And Baker and Taylor sas still around. They've since gotten out of the business.
So the bottom line is nobody wants B&N and thd big publishers are ready to see it fold. They've taken steps to limit their losses if it happens. Plus tgey have their own problems.
There is no magic bullet, no Microsoft willing to prop up the investment of a bunch of money guys. If B&N survives it will be on their own.
And it won't be Nook that saves then.
Look at the last numbers, from before the crisis:
https://www.bloomberg.com/press-rele...ancial-results
$92M hardware and content sales for the full year. (eBook sales are probably less than Fictionwise was doing when they bought them.)
Out of $3.6B in sales for all of B&N.
In a business generating around a couple billion in ebooks alone, in a world where KU *paid* authors nearly $400M.
I just don't think Nook can be made relevant again. The hole is too deep.