Three Reasons Not to Underestimate Barnes & Noble

survivorThis week’s Barnes & Noble news was bad.
The publishing industry didn’t think it was so good that the leading U.S. bricks-and-mortar bookseller decided to exit the tablet manufacturing business and investors didn’t like it either. After tumbling 17% on the day of the news, shares were up about 5.5% the following day.
But, what they say is true: Every cloud has a silver lining. Here are three reasons why B&N might not be out for the count digitally:
1. While it’s impossible to know ebook retailer market share, in many segments, Nook is still the No. 2 retailer.
2. B&N still has a strong network of retails stores from which to brand and sell their e-readers and ebooks.
3. Don’t forget the college stores, which could be powerful vehicles for device and educational content sales.
It’s not much to cling to, but it’s something. Read more.

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The rest of the day’s top news:
B&N on the App March (DBW)
Continuing on with its new strategy to distribute through third-party tablets, Nook launched an updated Windows 8 app. Related: Nook App on Fuhu nabi | On E FUN Nextbook
Bad Timing: Investing in Nook (DBW)
AudiobooksNow has just launched a Nook audiobooks app. Bad timing, considering in a year or two from now, there will likely be few people using that platform. That said, it’s possible for B&N to convince a third-party to develop and manufacture a closed app ecosystem that few people develop for and few want to use (sarcasm).
Another Positive B&N Outlook (Book Business)
Book Business calls the move by B&N “shrewd.”
Publisher Profits: Here Today, But What About Tomorrow? (The Shatzkin Files)
Margins on ebooks are good but they may be hard for publishers to maintain. Publishing consultant (and DBW partner) breaks it down in this must-read piece – and we’re not just saying that. Read!
From Coffee Table to Tablet (BBC)
 For a photographer, a book is an enticing opportunity to showcase work in a controlled environment to a wide audience. While the possibility of going digital with such work is enticing, it offers many challenges.
The Next J.K. Rowling (Forbes)
Bloomsbury might just have another mega-hit on its hands. And in the age of digital and the online discovery echo chamber, that could mean Fifty Shades-level sales.
Sesame Workshop Cuts Workforce (Deadline Hollywood)
The house of Big Bird and Grover is getting 10% lighter.
The Book Elf: Helping Readers Share Ebooks (DBW)
The Book Elf, a new social network for reading, wants to help readers share DRM ebooks. At first, it will be all books that are out of copyright but the company plans on slowly but steadily signing on publishers and titles.
Axis360: Patrons Can Now Borrow and Buy (DBW)
Baker & Taylor has added the ability for library patrons to purchase ebooks through its Axis360 platform.
Copia Expands in Australia (DBW)
The “socially driven” content platform has inked several deals putting it in prime digital content distribution position down under.
Lean Out (Mediabistro)
One of the most popular non-fiction titles of the year now has a parody ebook.


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