July 23, 2009 6:00 AM PDT

Will Barnes & Noble stores give its e-books a boost?

by Don Reisinger
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Barnes & Noble

Barnes & Noble is offering some e-books too.

(Credit: Screenshot by Don Reisinger/CNET)

Barnes & Noble on Monday announced that it's getting back into the e-book market. The company said in a statement that its new e-book store has more than 700,000 books for sale--far more than the 300,000 books available for download from Amazon.com's Kindle store.

Similar to Amazon's strategy, Barnes & Noble e-books can be downloaded directly onto an iPhone or iPod Touch. They will also be integrated into Plastic Logic's upcoming e-reader, which is expected to hit store shelves sometime next year.

It's an exciting announcement for the retailer. The company tried once before to break into the e-book market. But by not providing an easy delivery method to help users read the books, it failed in 2003.

Going forward, Barnes & Noble believes that it can compete on the same level as Amazon, which has enjoyed a head start in the space. But just how can it get ahead in the market? The Kindle is available to users now, Amazon has its own e-books available on the same platforms to which Barnes & Noble books will be made available, and both companies are known and trusted in the book market.

As far as I can tell, those 700 Barnes & Noble locations are the only factor potentially giving it an advantage. But can brick-and-mortar stores really cement success for Barnes & Noble's e-book endeavors?

For some people, the bookstore is a waste of time. Instead of thumbing through books on shelves, they'd rather sit at their computers, check out titles quickly on the Web, and decide which they want to buy. Some of those folks want to hold the book, so they have it delivered to their homes. Others decide to buy it for a cheaper price on their Kindle, iPhone, or other e-reader.

But it's that group of folks who do care about the bookstore on whom Barnes & Noble can capitalize far more effectively than Amazon can. Sure, those users can flip through synopses online, but going to the bookstore is more than that to them. They want to read a couple chapters. They want to check out specific sections. They want to sip some espresso at the coffee shop inside the store. They are going to the bookstore to enjoy an experience.

By bringing e-books and (eventually) an e-reader to customers, Barnes & Noble has an opportunity to appeal to that second group. It can integrate downloading e-books into each of those stores. It could also sell e-readers at checkout. That strategy could significantly improve Barnes & Noble's chances of competing.

Conceivably, all those coffee shops at Barnes & Noble won't be filled with folks flipping through pages of a hardcover. Instead, some might be sipping some coffee while reading a book they just downloaded from Barnes & Noble's e-book service.

But then again, that's not an easy scenario to picture. Online purchases are more convenient, and as Barnes & Noble's financial data has shown, times are tough.

In the end, it's you who will determine if the company's stores may give it a competitive advantage for e-books. So what do you think? Will you be buying e-books at your local B&N?

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Don Reisinger is a technology columnist who has written about everything from HDTVs to computers to Flowbee Haircut Systems. Don is a member of the CNET Blog Network, and posts at The Digital Home. He is not an employee of CNET. Disclosure.

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by Aanon July 23, 2009 6:48 AM PDT
Here we go again. Reisinger analyzing business strategy in 25 lines.
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by joshdeboer July 23, 2009 7:53 AM PDT
YEP!
by July 23, 2009 7:20 AM PDT
This sounds like a great B&N sales pitch and all, but there is nothing stopping someone with a Kindle from walking into a B&N, thumbing through books, grabbing a cup of coffee and downloading a book to their Kindle. I guess the argument about being able to buy the reader in the store makes sense, however I question how many people that are afraid of online purchases would be looking to switch to an electronic book reader. In the end it will come down to which device works better, so unless the B&N reader can do things better and more seamless then the Kindle this will just be another dead end.
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by rdupuy11 July 23, 2009 7:34 AM PDT
It's an advantage to sell the book reader in the store. A lot of people who haven't used one, still don't get it. Frankly, even if they've read about it, and studied it carefully they don't get it.

Such is life for most people, they need to put things in their hands to understand it. Suddenly, it becomes clear the screen really is that good, it really is that light. No, it really does have a more usable screen than the iPhones cramped screen.

Put that thing in your hands, you might not let go of it....out the door with a purchase you go.

As successful as the Kindle is, we aren't talking 10 million sold per quarter yet, and thats the potential here, its still a young market, nowhere near saturation.

B&N is wise to get in the game, soon, with a quality product....I expect the Plastic Logic device to fit that bill.
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by gertruded July 23, 2009 7:50 AM PDT
Digital books is a poor solution to non problem. Digital books are smothered in DRM. A real book is a real product with a real backup system (libraries) and no DRM.

Wasn't it just last week the Amazon reached into cutomer's Kindle and REMOVED books people had already paid for and started to read? That is the kind of draconian DRM that you can expect from American companies operating without regulation or control. If a company fails or even discontinues the business, DRMed books will share the fate that DRMed music has already had.
by The_Decider July 23, 2009 11:45 AM PDT
I get it: DRM + poor bookmarking, inability to highlight == loser
by FranceH July 23, 2009 8:21 AM PDT
Those with smartphones probably don't even need a device therefore their cost is minimal to try it as the reader software is free. I've been using e-reader software on my iPhone for almost a year and I love the convenience of always having a book handy if I'm stuck somewhere or on vacation and don't want to bog my bags down with heavy books. I am hoping that B&N's ownership will mean an even better assortment of book choices when I am shopping for something new to read.
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by kai6novice July 23, 2009 8:44 AM PDT
Barnes & Noble should give out ebook reader for free, if the customer buy a $200 (whatever suitable amount that Barnes & Noble think would make a profit) prepay e-book gift card or something. Then you can load the amount into your Barnes & Noble account, and buy e-book/real book with that money.
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by jwmpc July 23, 2009 10:02 AM PDT
The software is free. Free hardware has really never worked as a revenue model. Their reader works on lots of devices already out there so I think it's a better solution than Amazon's. The only problem is their ereader is essentially the same as the one on ereader.com and was probably simply coopted when B&N took over Fictionwise.

All that being said, I'd rather purchase an ebook than a hardcover book. Unless you are one of those fortunate few that can maintain a library of any size, it's far more efficient to use the public library system.
by The_Decider July 23, 2009 11:46 AM PDT
If you think the software is free you are deluded.
by Anarel July 23, 2009 8:44 AM PDT
I would just like to mention what this article did not; 500,000 out B&N's so called 700,000 book library is actually Google's circa 1923 public domain works. Meaning, their actual library of in print and more recent works is actually only around 200,000, whereas Amazon has 330,000 books available.
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by The_Decider July 23, 2009 11:44 AM PDT
e-books are a non-starter because they are not as useful as printed books. I would, and do, carry around 50 pounds of technical books instead of carrying around one of those worthless Kindle's or on a iphone or laptop.
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by ddhboy July 23, 2009 11:57 AM PDT
The problem with e-books is that publishers say stupid things like they're waiting for an e-reader that is in color, has audio, and can play video. Hello? Its called a website, you already have one, and people aren't willing to pay money to access it. Hell, if that was your intention why not just make a crunchpad? They aren't expensive and could be rolled out faster and much easier than an e-reader with e-ink.

Plus much of the problems with the printed media industry isn't even about people not reading books, newspapers or magazines, those numbers have remained stable. Its that the cost of production has grown while advertisers would rather just buy TV or internet space which they think is more useful than putting an ad in a newspaper.

Maybe these companies need to consider ways to lower their costs in the production of traditional media rather than trying to wish away their printing costs by providing a digital format that very few people want.
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by bcs89 July 23, 2009 12:01 PM PDT
i downloaded this on my blackberry storm yesterday and was up til 3 a.m. reading a recent stephen king book. it worked very well, without the $400 investment of a kindle (the book cost me $8), plus, the bb has a backlight that i understand the kindle is missing. the fonts are adjustable and i had no problems with screen size on the storm (which itself is not nearly as bad as the iphone fan-boys would have you believe). it kind of reminds me of the stand-alone gps that we never use anymore because the phone does just as well, and it beats the hell out of going to a bookstore.
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by falusian July 23, 2009 2:33 PM PDT
One nice thing about the Barnes & Noble eBooks is that you can read them on your computer. Kindle books cannot be read on a computer, which is a huge issue for reference works.
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by Inconnux July 23, 2009 5:16 PM PDT
B&N books might be worth downloading... if they aren't smothered in DRM.
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by PJB0222 July 24, 2009 9:51 AM PDT
The issues is that instead of partnering with an existing and great e-Book reader, Barnes and Noble is adding yet another piece of software and e-Book format.

As to DRM, my choice is to not buy any DRM locked books. If you insist on DRM, it must be transparent and allow me to read my material on any device I own. It must support a multitude of devices and reader software. It must be able to work off-line and be supported for MY life.

I also do not buy e-Books that are the same (or nearly the same) price as the hard cover book. It is electronic so there are no physical costs, storage costs, transportation costs or store costs. So there should be a significant cost savings that can be passed along to the consumer.

If you want to succeed with e-Books, get to a common e-Book format or provide the e-Book in multiple formats.

For an example of a publisher who understands what it will take to make e-Books really successful, look at Baen's (and the now several others who have joined with Baen) e-Book venture to distribute e-Books at webscription.net.
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About The Digital Home

Don Reisinger is a technology columnist who has covered everything from HDTVs to computers to Flowbee Haircut Systems. Besides his work with CNET, Don's work has been featured in a variety of other publications including PC World and a host of Ziff-Davis publications.

Don writes product reviews for InformationWeek and is a regular contributor to Processor Magazine. You can visit his personal site at DonReisinger.com or if you would like to email Don with questions or comments, drop him a line at CNETDigitalHome@gmail.com. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure.

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