Toronto-based e-reader Kobo lays off 63 people

[GeoffR]

Originally Posted by jswinden

Plus I hated that darn kePub thing where they used two rendering engines: A good one for kePubs (Kobo purchased books) and a crappy one for other ePubs (purchased elsewhere).

You can use either reader engine for sideloaded books once DRM is removed. It's only the presence of Adobe DRM that requires the use of the Adobe based reader.

[davidfor]

Originally Posted by Solicitous

I have had this niggling feeling in the back of my mind that Kobo has slowly been losing direction. I can only talk about being here in Australia, but given the number of retail partners I still havent seen a Vox, Arc, Aura or Aura HD for sale in any store, and online some of their partners don't even show the Aura or Arc for sale. Kindles on the other hand are advertised a lot harder and in stock compred to Kobo devices.

Which shops? I've seen all the Kobo e-ink devices in any JB HiFi I have been in. And they have at least one of the Android based devices, but I can't think of which. OfficeWorks always had the Touch and the Glo. They used to have the Mini but I don't think they had the later devices. I don't think I've been in a Harvey Norman since the Aura was released, but they did have all the older devices when I was there.

Online, both Bookworld and A&R seem to list all the devices, both e-ink and Android.

[Canuck_in_Japan]

Originally Posted by jswinden

I think the only way they will strengthen their business is to hire programmers who can get the firmware working correctly on their readers. Otherwise they are a dead eReader company walking. I still find it amusing that Sony closed their eBookstore and turned it over to Kobo, a company on the edge of dying. No doubt Amazon is rejoicing.

I seriously doubt the majority of ereader owners even know what a firmware is. The ereader does exactly what Joe the Reader wants it to do. It's the people on Mobileread that Kobo can't satisfy.
What they really need is some decent marketing and distribution.
Laying off 15% of your staff is never good but I'm not willing to give them up for dead yet.

[Purple Lady]

Originally Posted by DrNefario

I think that's probably the key. The only way kobo competes on price is by offering discount coupons, and if they can't be used on books from the big publishers, then where does that leave kobo?

Publishers shooting themselves in the foot again.

I read that Kobo actually blamed the end of agency in the US for the loss of their market share. In my case once the price fixing started, I pretty much stopped buying, and when the agency pricing stopped Kobo still didn't discount their book prices so I bought at Amazon.

Here's the post from the Digital Reader about Kobo - http://www.the-digital-reader.com/20...-will-kill-us/

[rollei]

Interesting that Kobo needs to rely on the agency model to survive.

Wonder if the agency model or wholesale model is better for the consumers.

Understanding The Agency Model

[ballfresno]

So much negativity here. Pity. I love my Kobo devices. Enough said: back to reading on my Kobo...

[fjtorres]

Originally Posted by rollei

Interesting that Kobo needs to rely on the agency model to survive.

Wonder if the agency model or wholesale model is better for the consumers.

Understanding The Agency Model

The wholesale model allows for loyalty programs, basket pricing, promotional bundles, micropay rebates, and other ways for vendors to differentiate themselves. With agency, the only ways vendors can differentiate themselves is with exclusive titles, deeper catalog, better customer service and policies. And in the US, all those favor...who?

Yeah, Agency is great.

Edit: another way to put it is that under wholesale, publishers control what they receive and the retailer controls what the customer pays, whereas under agency the publisher controls both and the retailer neither. Which is why Agency killed and crippled so many small ebookstores.

[6charlong]

Originally Posted by ballfresno

So much negativity here. Pity. I love my Kobo devices. Enough said: back to reading on my Kobo...

That's been my experience too. The Kobo eReaders have never given me any trouble after I learned their features and I love the customization of my reading that they provide. I still keep a Kindle Paperwhite around (since I already have one) to read books that only Amazon sells, but the PW's screen is harsh enough so that I'm always happy to come back to the gentler Aura.

I thought that possibly since Kobo is an international company this news may only mean they are shifting focus and support staff to additional countries in order to develop a wider, world presence but will continue as before with existing customers.

[sirmaru]

I never did complete the transfer of my Sony account to Kobo. I'm staying with Amazon and Samsung for my eReader devices.

I never bother to save old books and I accept that my Sony eBooks have now gone the way of my old Book of the Month Club books - returned to dust.

Originally Posted by Canuck_in_Japan

I seriously doubt the majority of ereader owners even know what a firmware is. The ereader does exactly what Joe the Reader wants it to do. It's the people on Mobileread that Kobo can't satisfy.
What they really need is some decent marketing and distribution.
Laying off 15% of your staff is never good but I'm not willing to give them up for dead yet.

Yes, they are really satisfying the hell out of everyone, that is why they are going under!

[robko]

Originally Posted by jswinden

Yes, they are really satisfying the hell out of everyone, that is why they are going under!

Pray tell why exactly they are "going under" simply because they are laying off 63 people? They could be cutting all the people involved on the tablet side of things. There could be lots of reasons for laying off people that don't result in them going under.
I understand you don't like Kobo, but guess what: there are lots of people that do like them. Are they perfect: no, but they have improved greatly over the years and none of the other companies are perfect either.

[rollei]

Originally Posted by fjtorres

The wholesale model allows for loyalty programs, basket pricing, promotional bundles, micropay rebates, and other ways for vendors to differentiate themselves. With agency, the only ways vendors can differentiate themselves is with exclusive titles, deeper catalog, better customer service and policies. And in the US, all those favor...who?

Yeah, Agency is great.

Edit: another way to put it is that under wholesale, publishers control what they receive and the retailer controls what the customer pays, whereas under agency the publisher controls both and the retailer neither. Which is why Agency killed and crippled so many small ebookstores.

Looks like agency pricing is a better deal for consumers and for Kobo too since they say ending agency pricing will kill them.

I suppose, with agency pricing, Kobo can afford to give a 75% discount since Kobo's margin is not dependent on the retail price.

I hope whatever happens the Kobo coupons will stay..

[fjtorres]

Originally Posted by rollei

I suppose, with agency pricing, Kobo can afford to give a 75% discount since Kobo's margin is not dependent on the retail price.

Kobo can give exactly zero discount on agency titles--that is the whole point of agency: the publisher sets the ptice and every retailer has to sell at the same price, with no discounts or promotions.
Kobo's discounts only apply to non-agency titles.

[rollei]

Originally Posted by fjtorres

Kobo can give exactly zero discount on agency titles--that is the whole point of agency: the publisher sets the ptice and every retailer has to sell at the same price, with no discounts or promotions.
Kobo's discounts only apply to non-agency titles.

Yes, that made sense. The coupons don't work on the big publishers.

[John F]

Originally Posted by rollei

Looks like agency pricing is a better deal for consumers and for Kobo too since they say ending agency pricing will kill them.

I suppose, with agency pricing, Kobo can afford to give a 75% discount since Kobo's margin is not dependent on the retail price.

I hope whatever happens the Kobo coupons will stay..

Originally Posted by fjtorres

Kobo can give exactly zero discount on agency titles--that is the whole point of agency: the publisher sets the ptice and every retailer has to sell at the same price, with no discounts or promotions.
Kobo's discounts only apply to non-agency titles.

Originally Posted by rollei

Yes, that made sense. The coupons don't work on the big publishers.

In the U.S. ...

I thought with the settlement, for the next couple of years, retailers could discount "agency" books, they just can't have an overall loss for a particular publisher.