The Fallacy Of The B&N Fallacy
mikecanex.wordpress.com
mikecanex.wordpress.com
To sum it up, IMHO the biggest problem with e-ink readers is that the advantage of e-ink don't outweigh the inconvenience to having another device. (unless the e-ink technology will substantially improve).
BN is abandoning hardware? Thinking about it?
It seems to me that BN has got something fundamentally wrong with it and I don't understand it well enough to figure out what it is. Fundamentally: if I am in a BN staring at a book that I want to buy, how is it impossible for BN to sell it to me at a price competitive with Amazon -- and it's not even close. I'm guessing the deals they negotiate with publishers suck, or the deals publishers sign with Amazon suck. In any event, BN is getting reamed.
My guess is BN loses money on Nooks, so selling them as a generic Android device isn't going to help it any.
I visit BNs frequently and it is gradually turning into a toystore with a coffee shop. Unless Toys'R'Us missed a huge opportunity by not providing coffeeshops and a couple of magazine racks for its customers, I don't think this is long-term viable. Again, I don't know what's broken at the core of BN but I suspect it simply needs to negotiate better deals with its suppliers. It provides a GREAT shopping experience except for that pesky price part.
The book situation is exactly as you say. I wonder if Amazon is losing money.
• Create a first rate storefront+reader on Android and the web.
• Shift more resources into the iOS app and make it better than anybody else’s.
• Perform a series of commerce-oriented experiments, e.g. subscriptions, bundling, in-book payments, etc.
The bit you quoted and respond to is what he said other people's advice was.
Note the sentence AFTER those bullet points: "Those are all good but I’d argue that doing this wouldn’t solve B&N’s problem in the long term."
The actual advice was to exit the app business entirely:
• Discontinue the tablets.
• Milk the eink cow until it topples over.
• Make an awesome storefront.
• Discontinue the reading app and license somebody else’s.