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Will Barnes & Noble Kill The Nook?
If the bookseller does stop producing its e-reader to concentrate on the licensing side of its operation, it will be good news for Amazon.
A disappointing set of results for Barnes & Noble [3] is causing speculation that the bookseller is to cease production [4] of its Nook [5] e-reader. The firm has warned, ahead of Q3 of its 2013 fiscal results--due Thursday--that its Nook Media division has incurred greater losses than its previous year. It had estimated a $3 billion revenue, but the firm has indicated that the real figure will be far lower. As a result, says the New York Times, future focus will be on licensing its own content to other device makers--in short, to Amazon [6] and Apple [7].
The firm has been trying all sorts of tactics to make its Nook work, such as last year's deal with Microsoft [8]. But it is Amazon's dominance that is giving the bookseller--the largest in the U.S.--such a hard time. Last month it announced that it would be shutting one-third of its retail stores [9] over the next decade. However, in another twist to the story, the Wall Street Journal is reporting [10] that the B&N Chairman, Leonard Riggio, is interested in buying the firm's consumer retail arm, which would effectively split the company in two.
[Image by Flickr user AMagill [11]]
