Tag: Barnes and Noble

My Favorite Amazon Shopping Stories

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Amazon_front_page_December_holiday_Kindle_deals

Amazon’s got more holiday deals today. A Kindle is now just $59, and their voice-activated “Fire TV” set-top box is just $79. And they’re also offering a $114 Fire HD7 — and a Fire Phone for just $229.

For a shortcut to Amazon’s new holiday specials, go to
tinyurl.com/AmazonHolidaySpecials

But I have to admit that shopping on Amazon at times feels like a “guilty pleasure”. For example, on a rainy morning last week, I did what feels like a terrible thing. There was a wonderful book that was on sale at Barnes and Noble, and I’d wanted to buy it as a Christmas gift. But that morning I’d been planning to enjoy a warm, cozy morning in that bookstore’s Starbucks. So after I settled in with my hot tea, I’d fired up my laptop, went straight to Amazon’s web site, and found a copy of that book that was $5.00 cheaper.
And then I ordered it from Amazon — while I was sitting in Barnes and Noble.

Barnes and Noble did get some money from me — when I paid for that delicious (but over-priced) Starbucks tea! And in the end, even when I purchased the book, it was just giving money to one giant corporation instead of a different giant corporation. You could argue that it’s reasonable (and very “American”) to shop wherever the price is cheapest. And of course, sometimes this can work against Amazon, too…

For example, this morning Amazon announced that they’re discounting their “Fire TV” stick to just $79. That feels like a great price, and my girlfriend and I do enjoy watching Amazon’s shows with her “Apple TV” set-top box. But that’s been complicated to set up, since we first have to start Amazon’s app on her iPhone, and then get the phone to communicate with Apple’s box. I thought maybe my girlfriend would appreciate Amazon’s easier solution, since it’s already connected to all of Amazon’s Prime TV shows — and can also be activated using voice commands.

But then I found even cheaper FIre TV sticks that were turning up for sale on Craigslist. There were even some eBay auctions selling Fire TV sticks which were brand new — and still sealed up in their original packaging — for less than $50. And if I didn’t want to wait for Craigslist, I could drive across town to pick up one today from somebody who lives in my community. Plus, I’d get to see another human face, hold the merchandise in my hands, and have an actual conversation about why they were selling it, when they’d bought it — and how they were enjoying their holiday season!

That’s the one thing you can’t buy from Amazon…

Has the Kindle Killed the Nook?

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Barnes and Noble store with Nook department

I knew the Kindle was successful — but I never dreamed it was literally destroying its competition. But last week, Barnes and Noble told its investors that not only did their Nook division lose money for the second year in a row. They also reported that its loss this year was going to be even bigger than their losses were last year — and a company insider suggested they’ll put a smaller emphasis in 2013 on trying to sell Nook devices.

The disappointing figures covered both Nook sales and whatever revenues they were earning from selling ebooks for the Nook. And Barnes and Noble is now lowering their predictions for how much they’ll be able to earn throughout all of 2013. On Monday, the New York Times reported that’s the worst news for the company’s investors. “The problem was not so much the extent of the losses, but what the losses might signal: that the digital approach that Barnes & Nobles has been heavily investing in as its future for the last several years has essentially run its course.”

But the most interesting detail in the Times’ article is that it’s not just investors who are losing hope for the Nook, but also the executives at Barnes and Noble. Citing a person “familiar” with the company’s inside strategy, they suggest that in 2013 Barnes and Noble may try to emphasize its vast library of digital ebooks in deals with other tablet manufacturers (like Samsung and Microsoft). “They are not completely getting out of the hardware business,” the source said, “but they are going to lean a lot more on the comprehensive digital catalog of content.”

One technology blogger even wrote that the Nook was in a “death spiral,” noting that Barnes and Noble had already issued an earlier warning in January about disappointing Nook sales over Christmas and during the last three months of 2012. “Companies very rarely warn twice in 40 days about the same problem,” writes a blogger at BGR.com, adding “When it happens, it usually indicates that something so unexpected is taking place that executives just cannot wrap their minds around it.” Amazon’s got a better distribution plan for their Kindle tablets outside of North America, but Barnes and Noble seems to be having problems even selling ebooks to their current Nook customers. For these reasons, he writes, “It is hard to see how the Nook’s revenue decline is going to be reversed in 2013.

“And it’s very hard to see why any new consumer who researches his or her purchase for even five minutes would now take the betamax risk of buying a Nook.

Amazon CEO Applauds “the Transition We’ve Been Expecting”

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Amazon's Jeff Bezos on the Kindle

I always enjoy hunting for nuggets of information when Amazon makes their big announcements to stockholders. Today Amazon’s CEO, Jeff Bezos, revealed something new to think about. Amazon did sell more printed books this December than they had the year. But it was the smallest increase ever in the 17-year history of Amazon — a rise of just 5%.

Meanwhile, Barnes and Noble announced plans to close 200 bookstores over the next 10 years — about one-sixth of all stores. That’s America’s single-largest chain of bookstores — and Borders bookstores already declared bankruptcy in 2011. It’s hard to ignore the fact that there’s not a lot of growth now in the sale of printed books. Today Amazon’s CEO identified this trend as “the transition we’ve been expecting.”

And for comparison, he added that after 5 years, “eBooks is a multi-billion dollar category for us and growing fast – up approximately 70% last year.” After that stunning statistic, there wasn’t much left to say — except a big thank-you to all the people who’ve started buying ebooks from Amazon. “We’re excited and very grateful to our customers for their response to Kindle and our ever expanding ecosystem and selection.”

Amazon also shared some other interesting bits of trivia about the Kindle. For example, since it was introduced in September, the Kindle Fire HD has continuously remained Amazon’s #1 best-selling, most gifted, and most wished for product “across the millions of items available on Amazon worldwide.” And by the end of the year, Amazon’s worldwide best-seller charts showed that the top four spots had all been claimed by Amazon’s digital readers and tablets — the Kindle Fire HD, the Kindle Fire, the Kindle Paperwhite and the Kindle.

Amazon has always insisted they’re willing to lose a lot of money over the short term, as part of a grand master strategy of growing their customer base over the long-term. So they probably want investors to focus on this number: in just the last three months of 2012, Amazon’s sales totalled $21.27 billion. That’s up more than 22% from the same period a year ago — an increase of $3.84 billon. And Amazon’s sales figure would’ve been even higherif it hadn’t been for fluctuations in the world currency market, which cost Amazon another $178 million.

I don’t know how Wall Street is going to react to Amazon’s numbers, but I’m impressed. For the last three months of 2012, they averaged over $236 million in sales every single day. And as Kindle owners, we’re all part of that number – and a big piece off Amazon’s long-term strategy.

The Kindle makes it even easier to buy things from Amazon — even when you’re lying on your couch!

The Secrets of eBook Readers

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shh - finger to lips - secret rumor

Ever wonder how other people read? It’s finally possible to know, using new data collected from ebooks. Last week Barnes and Noble leaked the patterns they were seeing among Nook readers to The Wall Street Journal, towards the end of a fascinating article called “Is Your eBook Reading You?” Citing the Nook data, the Journal reported…

  • “Nonfiction books tend to be read in fits and starts…”

  • “Novels are generally read straight through…”

  • “Nonfiction books, particularly long ones, tend to get dropped earlier.”

  • “Science-fiction, romance and crime-fiction fans often read more books more quickly than readers of literary fiction do, and finish most of the books they start.”

  • “Readers of literary fiction quit books more often and tend skip around between books. “

Some of the things they’ve determined are actually pretty obvious. For example, the first thing most people do after reading The Hunger Games is to download the next book in the series. But others have determined patterns which are even much more specific. For example, “It takes the average reader just seven hours to read the final book in Suzanne Collins’s Hunger Games trilogy on the Kobo e-reader – about 57 pages an hour,” the Journal reports. And “Nearly 18,000 Kindle readers have highlighted the same line from the second book in the series: ‘Because sometimes things happen to people and they’re not equipped to deal with them.'”

The data finally confirms something that I’ve always suspected. When people read the first book in a series, they usually go on to read the entire series, “almost as if they were reading a single novel. ” And the article got an even more specific example from the makers of the Kobe. “Most readers who started George R.R. Martin’s fantasy novel A Dance With Dragons finished the book, and spent an average of 20 hours reading it, a relatively fast read for a 1,040-page novel.”

But where is this all leading? At Barnes and Noble, there’s now a Vice President for eBooks who’s already begun sharing their data with book publishers, hoping they’ll eventually create books that are even more engaging. It’s still early, they tell the Journal, but Barnes and Noble has already begun to begun to act on the data. When they realized people weren’t finishing the longer nonfiction ebooks, they launched “Nook Snaps” to offer shorter dollops of information on hot topics like Occupy Wall Street or how to lose weight. And that might be only the beginning. “The bigger trend we’re trying to unearth is where are those drop-offs in certain kinds of books, and what can we do with publishers to prevent that?”

Amazon also offered a nice perspective on their ability to identify “popular highlights” and share them on their web page. “We think of it as the collective intelligence of all the people reading on Kindle.” And the Journal also notes that Amazon is both a seller and a publisher of ebooks. I was baffled when Amazon started selling “Kindle Singles” last year, since they basically seemed to me just like shorter ebooks.

But maybe Amazon has learned the exact same lesson — that readers tend to drift away from their nonfiction ebooks!

A Kindle Store at Your Local Mall?

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Amazon office building in Seattle

Your local mall might be getting a new tenant — a Kindle Store, filled with Kindles, accessories and the most popular books in print (including books published exclusively by Amazon). At least, that’s the new rumor which found its way to Publisher’s Weekly.

On their Twitter feed, the industry magazine shared the juicy headline (from a story by the Financial Post). “Is Amazon bringing a bookstore to a mall near you?” it asks, citing a report from the blog “Good E-Reader.” Within the next few months, according to the story, Amazon will try opening a real-world store to sell books and Kindles in Seattle, as “a test to gauge the market and see if a chain of stores would be profitable”! They cite multiple sources at Amazon “close to the situation,” and predict the store will open before next Christmas, and maybe even towards the fall, when Amazon officially launches their own line of books, or when Amazon releases the next version of their Kindle Fire tablet.

My first thought was: Maybe it’s because of the Kindle. Maybe ebooks have become so popular that Amazon now needs a new way to get rid of all their printed books! But then I remembered a bitter fight that Amazon’s been having with Barnes and Noble. Amazon announced they’d start publishing their own line of printed books, and then Barnes and Noble announced that they wouldn’t sell them! And they’re not the only bookstore planning to freeze out Amazon’s books, according to a columnist at Publisher’s Weekly. “I asked a number of independent booksellers in my beat (the South) whether they’d be stocking Amazon-published books. Answers ranged from ‘No’ to ‘Hell, no.’ ”

It’s an interesting column, because it points out that Barnes and Noble acquired a publishing house of their own in 2003 — after which other big book-sellers (including Borders and Costco) announced they’d
they stop carrying books from that publisher. “It’s easy to forget, in the age of monolithic publishing houses and ubiquitous big-box retailers, that the bookstore-as-publisher tradition goes way back – as pointed out in a recent Salon article, Shakespeare & Company published Ulysses, and City Lights published Howl.” But it still feels like an aggressive move, with Amazon launching both a publishing house for print books and a line of stores for selling them.

Of course, their real target may be Apple. Maybe Amazon’s decided they need their own stores at the mall where people can buy a Kindle Fire tablet, to keep competing with Apple’s iPad. Maybe Amazon wants to be able to offer same-day customer support, where you can bring in a defective Kindle, and receive a replacement Kindle the same day! And in the long-run, Amazon can keep benefiting from any new customers that their stores would bring in. After all, once a customer buys a Kindle, they’ll start buying all of their ebooks from Amazon!

It’s stories like this convince me that our world is changing — and fast! Last year, we were debating whether Amazon would destroy local bookstores. Now instead, we’re wondering whether Amazon will become our local bookstore!

Nook vs Kindle: Did Consumer Reports Make a Mistake?

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Consumer Reports logo

I’ve been studying a new article by Consumer Reports which just went online Friday. “In a first, a Nook beats the Kindle in our e-book reader Ratings,” they announced in a bold-print headline.

They’re talking about the new touch-screen version of the Nook (which finally went on sale last week). “The Barnes & Noble Nook Simple Touch Reader is more than merely a worthy competitor to the Kindle…” writes Consumer Reports reviewer, Paul Reynolds. “Now that we’ve tested the device in our labs, it actually scores a few points above the Kindle in our tests.”

Except not really. The article looks like it was changed later by a proofreader, who’s added the phrase “[corrected]” at one point further down the page. And now in brackets, in the third sentence of the article,
there’s a pretty big disclaimer. “[To clarify: The Nook scores one point above the Kindle below it in the 6-to-7-inch category. But it ranges from 4 to 5 points higher than other Kindles.]”

I’m not sure what “other” Kindles they’re talking about, since the only Kindle I know that’s isn’t six inches is the Kindle DX (which hasn’t been updated in almost a year). There’s also the cheaper “Kindle with Special Offers” and the WiFi-only Kindle — but that’s not really a fair comparison. (Obviously consumers already know what trade-offs they’ve made in order to get the lower price.) And of course, Amazon has stopped selling the Kindle 2 and the original Kindle, so there’s not much point in telling today’s consumers how those devices would’ve stacked up. It looks to me this comparison is a tie — especially since Amazon has announced later this year they’ll add the ability to borrow e-books from a library. The Nook was awarded a point for already having this capability, so it’s an advantage which is going to be short-lived.

I was also really intrigued that Consumer Reports didn’t award the Nook any extra points for the supposedly longer battery life that Barnes and Noble had been claiming they’d achieved. “Despite a power struggle between B&N and Amazon over which device runs for longer, we give both equal credit for a claimed battery life of five days or more,” their reviewer writes. In fact, for several criteria, it’s a tie (including battery life), and I’ve heard that the Kindle apparently beat the Nook when the magazine rated the devices on “Versatility”. One person who’s seen the ratings told me the Nook only scored higher for supported file types, and for the way that the Nook handles page turns.

And yet both the Kindle and the Nook received the magazine’s “Best Buy” rating. (Consumer Reports notes the latest version of the Nook “continues the steady improvement in Barnes & Noble’s e-book devices since the company rushed out a glitchy first version…during the holiday season of 2009.”) So now they’re reporting that “Simple Touch” Nook “matches or bests – albeit modestly – its Amazon competitor in almost every aspect of performance. ” This comparison ultimately shows that the Nook hasn’t landed a knock-out punch to Amazon’s Kindle project.

It’s more interesting as a general comparison, a status check on the war that’s raging between these two devices. “B&N has caught up with the Kindle in large part by emulating Amazon’s focus on reading with minimal fuss and extra features,” writes Consumer Reports, noting the new Nook eliminated the color navigation screen below the reading area (as well as the easy access to the Nook’s web browser). “As a result, it (like the Kindle) successfully “gets out of the way and disappears and lets you get on with your reading,” as Amazon CEO Jeff Bezos said in praise of the Kindle during my interview with him last month.” But in the mean time, rumors are flying about the pending release of a new color touchscreen tablet device from Amazon. I’m half-expecting Amazon to announce a new version of the Kindle at the same time — so Consumer Reports may have to perform a new comparison soon.

To be fair, I’ll admit that there are things I like about the Nook. I was talking to my friend Len Edgerly again this week, and I acknowledged that it’s obviously easier to point at a choice on a menu than to first nudge your controller through each of the other choices above or below it! Although if you’re trying to look up a word, apparently you first get only an intermediate menu when you point at a word on the Nook’s screen, where you then have to indicate again that what you want is the word’s definition. But I also like the two-column layout of the Nook’s home page. (And yes, it does look easier to navigate the device just by touching the screen.)

But I’m still a big fan of my Kindle.

War Erupts Between Kindle and Nook Over Battery Life

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Amazon Kindle vs Barnes and Noble Nook Spy vs Spy cartoon

C|Net just received an angry response from the president of Digital Products at Barnes & Noble. I’d linked to C|Net’s story yesterday, so I was surprised that its facts were now being challenged. Barnes and Noble is now claiming that the Nook’s battery actually lasts more than two and a half times longer than a Kindle’s battery — at least under certain conditions.

“While reading at one page a minute, the all-new Nook battery lasts for 150 hours, where the Kindle battery, using the same page-turn rate, lasts for only 56 hours (both with Wi-Fi off)… In our side-by-side tests, under the exact same conditions, continuous use of the device resulted in more than two times Kindle’s battery life.”

If that’s true, then Barnes and Noble mangled the launch of their touch-screen Nook by botching their description of one of its main selling points. Paul Biba, a Kindle blogger, actually watched the official announcement live at a Barnes & Noble store in downtown New York City. And when the question of battery life came up, Biba reported, their official answer was that it was calculated “based on 1/2 hour reading per day with WiFi off. ”

The next day, Amazon claimed the Kindle could also run for two months on a single battery charge — if you only read it for half an hour a day.

You might wonder if Amazon was inventing new statistics — but apparently it’s the same claim that’s been around for years. In November of 2007, Popular Mechanics was already reporting that the Kindle’s battery would last for 30 hours — which of course breaks down into 60 half hours, or two months of reading just one half hour a day. (Assuming the battery isn’t also draining too much during the time that it’s not being read!)

And another obvious response is: who cares? How often would you need to read more than 30 consecutive hours without stopping to re-charge your Kindle? Obviously you can invent a few scenarios. (“What if I’m back-packing across hundreds of miles of Siberian tundra, and I’m also huddling in my tent each night trying to read War and Peace“?) But the distinction is a signal of a fierce competition between Amazon and Barnes and Noble, C|Net’s reporter points out, and “as these devices become more and more alike, marketing language becomes very significant, especially when it comes to selling points like battery life.”

Another blogger was more blunt. “Barnes and Noble pretty much called Amazon a liar for manipulating the battery life claims,” wrote Nate Hoffelder at The Digital Reader. But I’m more surprised by what Barnes and Noble was claiming about the Nook on Wednesday — since it’s very different than the performance statistics that they’d cited on Tuesday.

For example, Wednesday Barnes and Noble made an even more incredible claim. “While reading at one page a minute, the all-new Nook battery lasts for 150 hours.” Unless I’m missing something, that would come out to 300 days of usage (at a half hour a day) — which would be a whopping 10 months. I guess the battery must continue draining quite a bit during the 23.5 hours a day when the Nook isn’t running. Especially since the Barnes and Noble official also claims that the new Nook “offers more than 25,000 continuous page turns on a single charge.” But if you’re making just one page turn every minute, then shouldn’t that charge last 416 hours (or 25,000 minutes)? If so, that’d represent 17.36 days of non-stop use — but if you’re using your Nook for just 30 minutes a day, it comes out to 2.2 years.

And if the Nook can really run for 2.2 years on a single battery charge — then why didn’t Barnes and Noble just say so on Tuesday?

How the Kindle “Doubled” Its Battery Life

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Kindle 3 vs new touch-screen Nook on battery life

A bright reporter at C|Net made the discovery. Amazon says the Kindle now has a battery life of two months. Wednesday morning Amazon released a new version of the “Kindle with Special Offers” — a 3G version that’s discounted to $164. But instead of promising the usual one month of use without a battery charge, Amazon now says this Kindle’s battery will last two months!

And Amazon’s also doubled the battery life that they’re reporting for the Kindle 3 and Kindle WiFi…

So what’s going on? C|Net’s reporter has it all figured out. On Tuesday Barnes and Noble launched a brand new touch-screen Nook — and then claimed that its two-month battery life was double that of the Kindle (calling it “the longest battery life of any eReader”). “Amazon countered by magically upping the battery life of the Kindle to two months,” reports David Carnoy. But it turns out that Amazon may have had a good reason…

The Nook’s battery life was calculated by assuming just one half hour of reading time each day. “Let the math shell games begin!” joked one user in a Barnes and Noble discussion forum. “Anyone want to lay odds on who will go to 4-month battery life assuming a 15 minutes a day reading habit?”

The CEO of Kobo also took issue with the Nook’s ‘half-hour-a-day” figures, complaining “that’s not a typical usage scenario,” and arguing that the same lofty claim could be made about the battery life of the Kobo.
“It appears that [Amazon] just took issue with how its competitor was calculating and presenting its battery life numbers,” C|Net reports, noting that Amazon also updated their Kindle product descriptions with a full explanation.

“A single charge lasts up to two months with wireless off based upon a half-hour of daily reading time. If you read for one hour a day, you will get battery life of up to one month. Keep wireless always on and it lasts for up to 10 days. Battery life will vary based on wireless usage, such as shopping the Kindle Store, Web browsing, and downloading content. In low-coverage areas or in EDGE/GPRS-only coverage, wireless usage will consume battery power more quickly.”

So the Kindle’s battery hasn’t suddenly become twice as powerful as it was before. And I thought C|Net’s reporter gave this episode the perfect epitaph. “Amazon didn’t have any comment about its number changes, but it clearly shows that the competition is intensifying in the dedicated e-reader space…”

Kindle vs Nook: More Surprising Sales Statistics

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Barnes and Noble Nook
Amazon made a stunning announcement Tuesday morning. “In just the first 73 days of this holiday quarter, we’ve already sold millions of our all-new Kindles..”

Kindle owners were the first to get the news, since Amazon quietly posted it online in a forum for Kindle owners. “Thank you, Kindle customers…” the announcement began, adding that “in the last 73 days, readers have purchased more Kindles than we sold during all of 2009.” Their post was just six sentences long, but it seemed bigger in scope — and big on gratitude. Amazon’s Kindle Team said they were “energized” (and grateful) for “the overwhelming customer response,” and the message ended with the words “Thank you for being a Kindle customer.”

It’s fun watching the reactions from skeptical technology sites. “It’s raining Kindles,” wrote The Motley Fool. They’ve complained in the past Amazon never revealed the actual number of Kindles sold, saying it’s “like having a discussion with a kindergartner or a politician. They all tell you what they think you want to hear…but lack the details you really need to know before drawing your own conclusion.”

Even then, Amazon’s announcement Tuesday didn’t completely satisfy the site. “Amazon.com still isn’t coming clean with how many Kindle e-book readers it’s selling, but at least now we know that it will be in the ‘millions’ this holiday quarter alone.” The Motley Fool called Amazon’s sales figure “impressive,” and attributed it to the better deals available. “[I]t really wasn’t until this year’s price war — driving the price of the Kindle to as low as $139 — that it all began coming together. Book lovers that figured it would take several dozens of e-book purchases to cover the cost of the $399 model can now justify the lower break-even point on a $139 reader.”

Information Week supplied some crucial context for Amazon’s announcement. Just last week, Barnes and Noble revealed it was selling its color Nooks at a rate of 18,000 a day. Publisher’s Weekly had declared the company’s CEO as their person of the year, and in a profile, he’d revealed that every four or five days, Barnes and Noble loaded up another 747 aircraft just to fly in more Nooks from China. That would come out to 1,314,000 Nooks if it lasted for 73 days — two Nooks for every three Kindles sold — but the Nook Color has only been available for less than 7 weeks.

It’s been 47 days since its release on October 28, which works out to just 846,000 color Nooks sold so far (assuming their sales rate remained constant). “All this vague one-upmanship, doesn’t answer the question on most analysts’ minds,” complains Information Week, “which is how well the Kindle is selling compared to the Apple iPad.” But at least now we have a number to work with for the number of Kindle owners in the world. We now know that there are at least two million new Kindles firing up out there in the wild.

The devil is in the details, and C|Net found something even more important that I’d missed. Amazon’s CEO is predicting that ebooks won’t start outselling all printed books for a while — saying ebooks won’t even surpass the sales of paperback books until the summer of 2011. And as far as ebooks outselling all printed books, he’s predicting it will finally happen “by 2012.”

The Secrets Behind Amazon’s Quarterly Report

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Amazon 3Q stock chart - third quarter of 2010

It’s a special time of year — when major corporations finally reveal the secret numbers about how their companies performed over the previous 13 weeks. Yesterday Amazon released their own quarterly earnings reports, right in the middle of a week of rumors and predictions about tablet-sized reading devices. Amazon reminded investors that the newest generation of Kindles are “the fastest-selling Kindles of all time.” And they’re also the #1 best-selling product on Amazon — both in America and Britain.

“A sour economy failed to slow down Amazon.com,” reported the New York TImes, “as the company’s net sales climbed 39 percent in the third quarter.” But what’s more interesting is what they didn’t say. A financial analyst in San Francisco believes that this year, Amazon will earn a whopping $2.8 billion from their Kindles and ebook purchases, according to Bloomberg news. And within two years, that number could nearly double, to $5.3 billion in 2012!

That’d break down to the equivalent of 15 million Kindles sold in 2010, and 30 million in 2012 — though some of the profits obviously are coming from ebook sales. But what’s even more interesting is the analyst’s second comment. Kindle users “will not only continue buying more e-books, but also subscriptions, accessories, [and] hardware warranties,” he predicted, saying eventually the devices would be used to deliver music and even full-motion video. Will Amazon eventually open up new stores for Kindle music and Kindle video?

And that’s where the first rumor gets a lot more interesting. While Amazon was announcing their quarterly results, C|Net also reported that this Tuesday, Barnes and Noble will reveal a digital reader with a full-color touch-screen — the “Nook Color,” priced at $249. “It’s a big step ahead, instead of chasing Amazon,” their source explained, adding that it’d be based on Google’s popular Android operating system, and would sell for half the price of Apple’s tablet-sized iPad. It’d ship with a 7-inch color screen — which is a magic dimension size that has already been generating some controversy.

“One naturally thinks that a seven-inch screen would offer 70 percent of the benefits of a 10-inch screen,” Apple’s Steve Jobs told analysts Tuesday when announcing their own quarterly earnings. “Unfortunately, this is far from the truth. The screen measurements are diagonal, so that a seven-inch screen is only 45 percent as large as iPad’s 10-inch screen. You heard me right: just 45 percent as large…
The seven-inch tablets are tweeners: too big to compete with a smartphone, and too small to compete with an iPad.”

Jobs insisted that his comments were based on Apple’s “extensive user testing on touch interfaces over many years…we really understand this stuff.” But the truth probably lurks somewhere between the lines. Reading devices have proven to be so popular, that none of these companies want to get left behind. It’s not just that Amazon’s Kindle-related profits are probably already in the billions of dollars. It’s that selling us millions of Kindles means we’ll keep using Amazon’s store for our future purchases — of e-books today, but maybe also for music-and-video purchases in the future. So while I’m casually reading my e-books, major corporations are already fighting the war of tablet-sized reading devices.

And honestly, I’m not sure how I feel about all this speculation. I just worry that someday we’ll look back with a fond nostalgia to the Kindle 1. “It didn’t offer full-motion color video on high-definition screen,” we’ll say.

“But it was really great for reading books.”

The End of the Book as Seen by Regis Philbin

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It's a Book by Lane Smith

I think this is a milestone. Friday, 79-year-old Regis Philbin discussed the end of the printed book on his morning daytime television talk show.

It began when co-host Kelly Ripa brought out a new children’s picture book titled “It’s a Book.” She read its dialogue between a technology-loving jackass, and a monkey who still loves books. The confused jackass watches him reading for a minute, and then asks “How do you scroll down?”

“I don’t. I turn the page. It’s a book.”

“Do you blog with it?”
“No. It’s a book…”
“Can you make the characters fight?”
“Nope. Book.”
“Can it text.”
“No.”
“Tweet?”
“No.”
“Wi-Fi?
“No.”
“Can it do this? ‘Doot’…”
“No. It’s a book.”

But here’s where it gets interesting. It’s a brand-new book — released just two weeks ago — and the author had delivered a special version to Regis and Kelly. On the book’s inside cover, he’d suggested the book’s characters could be people on their talk show. The book-loving monkey was Regis, while the cute little mouse was Kelly, and the technology-loving donkey was Regis’s producer, a man named Gelman.

It was a special edition of the show — later, Gelman would try to teach 79-year-old Regis how to use a computer. (Regis is a notorious technophobe, possibly because he was born in 1931, back when Herbert Hoover was still President.) And yet in their conversation, Regis seemed to sense that his world had finally reached a turning point.

*                        *                        *
REGIS: It’s too bad about books, because just recently Barnes and Noble…

KELLY: Oh, I — they’re going to sell Barnes and Noble.

REGIS: — you know, just can’t do it any more. Isn’t that a shame, those bookstores slowly going out of business?

KELLY: I mean it’s like, to me there’s nothing better, also, than going in a library and smelling all the books and hearing the — the crinkling of the plastic covering on the b- —

REGIS: Yeah, exactly.

KELLY: I mean it’s just, I hope that we haven’t taken it too far.

REGIS: Our kids missed the big internet age when they were small, you know, and it was still books. And boy, I’ll never forget when we brought the girls here to New York, how Joanna loved these bookstores. And it was a thrill for her. I was taking — “Wanna go see a movie or something?”

“No, I wanna go to this book store.” Barnes and Noble on 5th Avenue, and all those stores.

KELLY: Now she’s an author. Now she writes.

REGIS: And now she’s an author. Yeah.

KELLY: It’s funny. My son just got his, well, not just, but over the summer, his seventh grade reading list. And it’s still books! So I’m happy to say that they’re still using books.

REGIS: Yeah. I guess there’s room for both internet and books, you know. But unfortunately…

*                        *                        *

Ironically, Regis Philbin has written two autobiographies — neither of which is available on the Kindle!

But click here to buy “It’s a Book!”

Is the Kindle Killing Barnes and Noble?

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Barnes and Noble store with Nook department

As the Kindle soars in popularity, at least one bookstore is already in trouble. Barnes and Noble put itself up for sale, and New York Magazine just ran a touching profile of the company’s founder,
69-year-old Leonard Riggio.


“I still like books,” he said, though it didn’t really need saying. All around him, in a conference room that evoked an elegant old library, were shelves lined with hardbound classics. Books had made Riggio a fortune… Books had been very good to him, and now they were dissolving into the ether…

Riggio wanted to say something, but he couldn’t quite find the words, so he burst out of his chair and charged over to one wall. “I don’t know how you can intellectualize this,” he said, “but a book is …” To continue his thought, he pulled down a copy of ‘The Count of Monte Cristo’, shook it, felt its substance. “This bound volume of Dumas is content. We have to understand people want to own this content. They want this. It’s very important.”

The magazine’s reporter visited the million-square-foot warehouse in New Jersey where Barnes and Nobles has its East coast distribution hub. (It’s “long enough to fit the Empire State Building sideways,” and stocks at least two copies of every single title that’s in print.) The article makes an interesting point: that bookstores earn more money on book sales than the publishers do. (Though Riggio once argued that “People in the world of literature tend to look down on people who make a profit.”)

Yet today, the hardware-based Kindle is Amazon’s best-selling product, and the Nook is also Barnes and Nobles’ best-selling product. “As [their new CEO] sees it, the superstores can serve as platforms for marketing their own replacement technology,” the magazine notes. “Walk into any Barnes & Noble, and the first thing you’ll see is what Lynch calls the ‘shrine’ — a counter where salespeople introduce the Nook. ”

But at the middle of this historic change is a 69-year-old man who founded a chain of bookstores. Now he’s left with a tablet-sized piece of electronics in his hand, and New York Magazine seems to
catch him showing some ambivalence.


“You know, I’m going through a thing — the record shows how old I am,” he said. “I’m going through, you know, like, ‘Oh my God, do I need this? At this period in time, to be as busy as I am…?'”

“If this was a Nook,” Riggio said as he flipped through the pages of The Count of Monte Cristo, “I just look at is as, well, here are the pages, and we magically erase the pages and another book appears.” As a business strategy, he was wagering that this convenience would inspire readers to spend more. But personally, Riggio remains unswayed. He doesn’t use his own Nook. “I like to hold the book instead of the device,” he said. “I would rather own multiple books than a single book that carries everything.”

And there you have it: The head of the company that sells the Nook doesn’t actually want to use a Nook. As New York Magazine puts it, “for all his newfound enthusiasm, he still can’t imagine a world in which the bookstore — or what he likes to call the ‘cultural piazza’ — is replicated by a piece of plastic…”

Thanks to Mike Cane for the link.

And click here to get The Count of Monte Cristo as a free Kindle ebook!

Are Publishers Lying about the cost of eBooks?

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Pinocchio is lying - when he lies his nose grows
Last week the Wall Street Journal ran a controversial opinion piece about ebooks. A former book editor and a business professor argued that publishers needed to sell advertisements in ebooks in order to offset their shrinking profit margins. “[A] digital book is far less profitable than its hardcover cousin priced at $25,” their article argued. But according to responses on the web, there’s a problem with that argument. It isn’t true.

“Baen, a publishing house that specializes in fantasy and sci-fi, mostly with a militaristic bent, says that they’ve found that e-books significantly increase profits,” responded one commenter at a technology web site, even though that publisher sells DRM-free versions of their ebooks “for substantially less than they sell dead-tree versions.” And then another commenter backed up their skepticism with actual data provided by the New York Times.

Publisher’s Profits Before Overhead
On a $26 hardcover: $4.05
On a $12.99 ebook: $4.56 – $5.54
On a $ 9.99 ebook: $3.51 – $4.26

This isn’t speculation. The Times based their statistics “on interviews with several publishers and consultants who work with the publishing industry.” eBooks eliminate many of the costs associated with stacks of hardcover books, including printing costs, storage fees, and the cost of shipping books (and then shipping back the unsold copies).

“That, obviously, is exactly what logic would tell you,” one commenter concluded. And the Times article suggested the publishers’ real motive might be simple self-preservation — they’re trying to keep up the demand for printed books. In a future with even more digital readers, lower ebook prices would mean “print booksellers like Barnes & Noble, Borders and independents across the country would be unable to compete… if the e-books are priced much lower than the print editions, no one but the aficionados and collectors will want to buy paper books.”

One publisher’s consultant even tells the newspaper point-blank that “If you want bookstores to stay alive, then you want to slow down this movement to e-books. The simplest way to slow down e-books is not to make them too cheap.”

So are publishers being honest about the costs of publishing a book? It’s a hotly-debated mystery, even to those people who are most affected by it: the authors who are actually writing the books! At the end of their article, the New York Times tracked down best-selling author Anne Rice, who admits that “None of us know what books cost. None of us know what kind of profits hardcover or paperback publishers make.”

Most of Rice’s books are available on the Kindle — though not her most famous book, Interview with the Vampire But as the publishing industry faces historic changes, it was nice to see that Anne Rice still remains firmly committed to the future of the ebook. “The only thing I think is a mistake is people trying to hold back e-books or Kindle and trying to head off this revolution by building a dam.

“It’s not going to work.”