Kobo reveals big plans

[PeterT]

From The Bookseller:

Kobo will launch its self-publishing platform this quarter and plans on expanding to “a dozen” new countries in 2012, the company’s c.e.o. Mike Serbinis has told The Bookseller.

Serbinis also revealed that thanks to the acquisition of Kobo by the giant Japanese e-commerce company Rakuten, Kobo now had its own “nuclear deterrent” should Amazon begin to cut e-book prices aggressively.

Kobo launched in the UK last year with W H Smith as its main retail partner, and has since built up a “double-digit market share”, according to Serbinis. “It’s been climbing since then. We think we are taking share off Amazon, but we have also seen some of the local players drop out, while Waterstones does not have an e-reading solution at present.”

Serbinis said it would not be “easy” for a new competitor, such as Waterstones if it brings out a dedicated e-reader, or Barnes & Noble, to come into the UK market. “We will be expanding our presence. Our strategy is to find the premier bookseller partner, and then expand the number of partners, while also deepening our relationship with the main partner. We looked at Waterstones but they were obviously going through a certain amount of turmoil at the time with the sale [to Alexander Mamut].”

Kobo previously announced that it would launch a self-publishing tool, similar to Amazon’s Kindle Direct Publishing and Barnes & Noble’s PubIt, but Serbinis said the business had been focused on expanding internationally, launching its tablet device, and closing the sale to Rakuten. But he promised the platform would launch “this quarter” before the summer. “We are currently fine-tuning our offer,” he said.

He said the deal with Rakuten, which is a £25bn-a-year business, would help Kobo “mitigate” against those companies with very deep pockets. “We have a nuclear deterrent by having a strong balance sheet.”

He added that Kobo expected to pick up the pace of its international expansion in 2012, moving into a “dozen new countries” with local partners, including Japan, other parts of Europe, Asia and Latin America. “We’ve done this a few times now, so we have the right recipe.” In France, where Kobo partners with Fnac, he said the company was beating Amazon two to one, in both device and e-book sales.

[Suzanna]

Competition is always good, and now that Kobo is being backed by a big player (Indigo sold the company just in time!) they'll actually be able to play on the same field as Amazon.

I know there are a lot of people who are frustrated by how long it takes to distribute books to Kobo through Smashwords and how long it takes for updates to trickle out to the stores. It will be good to be able to go direct.

[Giggleton]

Probably just more of the same, but we can always hope for something different. Why do we need two computers to serve the same file?

[Canuck_in_Japan]

I love me some Kobo so I hope they get better and better.

[EowynCarter]

Originally Posted by Giggleton

Probably just more of the same, but we can always hope for something different. Why do we need two computers to serve the same file?

It's not the same file

As to why to we need someone else than amazon, do you think they would use low prices if not for competition ?

[Giggleton]

Originally Posted by EowynCarter

It's not the same file

As to why to we need someone else than amazon, do you think they would use low prices if not for competition ?

If prices need to be set, it is the creator who should set the price.

[ProfCrash]

Glad to see that Kobo is expanding. With Sony becoming more marginalized, BN not able to get out into the international market, it is nice to see an E-Pub reader that is finally making an effort to challenge Amazon.

[J. Strnad]

I appreciate the attempt at competition!

My first ereader was a Kobo so I have fond emotional associations with the company. Personally I credit them with causing the ereader price war that resulted in Nook and Kindle lowering their prices dramatically. They were both in the $250 range before the $150 Kobo reader came along.

[MrsJoseph]

I love Kobo and hope that they get larger. The DRM is easy to remove and the readers are pretty nice. The only think I don't like is that their search in their store is horrible and they have horrible CS. Lucky I rarely need CS.

[crossi]

Originally Posted by Giggleton

If prices need to be set, it is the creator who should set the price.

Where did you get that idea? Authors don't set any prices unless they self publish. The publisher or retailer has always set the prices. Actually once the creator/author sells the rights they have little or no say about anything icluding price, book cover, front page blurb, when it is printed, or anything else.

[DrNefario]

I think kobo have been pretty smart about breaking into new markets. Hooking up with WHS here in the UK was a great move. Neither the hardware (or maybe the firmware) nor the website are quite up there with amazon, though, based on my own experience.

[fjtorres]

Originally Posted by crossi

Actually once the creator/author sells the rights they have little or no say about anything icluding price, book cover, front page blurb, when it is printed, or anything else.

They can't even determine if the book remains on sale.
It is not unheard for a publisher to just bury a box of the book in a warehouse and neither promote it nor release the rights.

All a typical writer gets to choose is whether to accept the traditionalist 12% royalty or not. Of late, many are choosing "not".

Kobo is looking to help those authors.

[DiapDealer]

I find it extremely refreshing to see [anybody not named Amazon] coming out with statements that don't include pissing and moaning about the imminent demise of competition. Go Kobo Go!

[ProfCrash]

Yup. Go Kobo Go. They have created a device that people enjoy. They are working on improving their bookstore. They offer coupons for non-Agency based books. They have been working hard at expanding internationally. They are showing people that you can challenge Amazon if you want to work at it.

There is no reason BN could not have offered coupons and bundles for non-agency books. There is no reason why BN has not figured out how to deal with the international markets issue.

Kobo was bought by a large organization but much of what is happening now is based on the path that they chose long before they were bought out. I am thrilled to see someone who is simply focused on competing and not whining.

[HappyMartin]

Really do hope Kobo does well. I find myself a fan of Amazon by default. In that I mean I am a fan of reading and for me Amazon is about the only show in town. Competition would be great.

They have a tough act to follow though. Amazon service for me has been impeccable.