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Discussion Starter · #1 ·
http://www.barnesandnobleinc.com/press_releases/6_25_15_2015_FYE_Q4_earnings.html

NOOK

The NOOK segment (including digital content, devices and accessories) had revenues of $52 million for the quarter and $264 million for the full year, decreasing 39.8% for the quarter and 47.8% for the year.

Device and accessories sales were $13 million for the quarter and $86 million for the full year, declining 48.2% and 66.7%, respectively, due to lower unit selling volume. Digital content sales were $40 million for the quarter and $177 million for the full year, declining 36.5% and 27.8%, respectively, due primarily to lower device unit sales.
Full-year ended May 2, 2015 (so from May 2, 2014 to May 2, 105) Nook digital content sales was $177 million (27.8% decline year on year)

$177 million x 65% royalties = $115 million royalties payout. And this $115 million is for all publishers.

KOLL/KU Global Fund for July was $2.785 million (average payout $1.80), 31 days of KOLL, 14 days of KU --------1.547 million borrows
KOLL/KU Global Fund for August was $4.7 million (average payout $1.54) full month of KOLL and KU--------3.052 million borrows
KOLL/KU Global Fund for September was $5 million (average payout $1.52) full month of KOLL and KU-------3.29 million borrows
KOLL/KU Global Fund for October was $5.5 million (average payout $1.33) full month of KOLL and KU ---------4.14 million borrows
KOLL/KU Global Fund for November was $6.5 million (average payout $1.40) full month of KOLL and KU--------4.64 million borrows
KOLL/KU Global Fund for December was $7.25 million (average payout $1.43) full month of KOLL and KU --------5.07 million borrows
KOLL/KU Global Fund for January was $8.50 million (average payout $1.38) full month of KOLL and KU -----------6.15 million borrows
KOLL/KU Global Fund for February was $8.00 million (average payout $1.41) full month of KOLL and KU ------------5.67 million borrows (28 days February)
KOLL/KU Global Fund for March was $9.30 million (average payout $1.34) full month of KOLL and KU ---------------6.94 million borrows
KOLL/KU Global Fund for April was $9.80 million (average payout $1.36) full month of KOLL and KU -----------------7.21 million borrows
KOLL/KU Global Fund for May was $10.8 million (average payout $1.37) full month of KOLL and KU -----------------7.88 millon borrows

$10.8 mil x 12 months = $129.6 million
Amazon already said June, July, August will be in excess of $11 million.

At this rate of growth, something like this is likely

KU payout in 2015: ~$130-$140 million
Nook payout in 2015 for all publishers: ~ $90-$95 million (at $115 million for the year ending May 2, 2015 so I'm guessing $90-95 million royalties payout from Jan 1st 2015 to Dec 31st 2015)
 

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This is somewhat depressing news.  I hate that Barnes and Noble is such a poor competitor to Amazon.  Monopolies can be frightening things.

Going wide with other retailers - and promoting Apple and Google as alternatives - might be a smart idea for the Indie community at large.
 

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It's because BN and Amazon are ebook sellers selling under the old model. Neither one has been able to evolve, and this is going to kill BN quite quickly. Amazon will be fine because they aren't just a bookstore, but their market share will just shrink going forward as Apple and Google grow.
 

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Barnes and Noble led many early innovations in ereader technology and then Amazon ripped out a lot of their ability to compete through the creation of Kindle Select, which is why Barnes and Noble will not stock Amazon Publishing books. AS KU=Select the title of this thread is somewhat tautologous.
 

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It's because BN and Amazon are ebook sellers selling under the old model. Neither one has been able to evolve, and this is going to kill BN quite quickly. Amazon will be fine because they aren't just a bookstore, but their market share will just shrink going forward as Apple and Google grow.
I don't see Apple and Google being able to affect Amazon's sales much. Keep in mind that Apple and Google have lots of irons in the fire and may not put out a lot of effort.
 

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L C Storm said:
I don't see Apple and Google being able to affect Amazon's sales much. Keep in mind that Apple and Google have lots of irons in the fire and may not put out a lot of effort.
Google just past the one billion device mark last quarter, and Apple devices aren't that far behind. That's a huge base of people that interact with iTunes and Play on a daily basis. As Apple and Google roll out new features (iTunes is going to have something in store very soon and Play is already showing commitment to under price Amazon), these people are going to have no reason to go to a third party to buy their books. I don't think it's even a question at this point. It's just going to happen, and the only real question is how long it will take.
 

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B&N is a company that never listened to consumers, or authors, or anyone down on the ground getting their hands dirty, so to speak. It's going to bankrupt them. Maybe they have a year left. People have been complaining about their search function for years, and when they finally upgrade their website, they make it even harder to find books. It's like ecommerce 1.01: make it easy for your customers to buy from you.

It's really friggin' annoying watching them roll over and die. That other retailer is getting too big for its boots and needs all the competition it can get.
 

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KelliWolfe said:
Kobo, iTunes, and Google Play are no better. All of them have their sites programmed by the same pack of 3-legged box turtles with severe learning disabilities.
Ladyvine and KelliWolfe are both correct.

None of the other platforms can compare to Amazon. If Amazon sat on their thumbs, they would still succeed because the other companies are not innovative enough. I have high hopes for Apple. But given their collusion lawsuit, I don't trust them any more than Amazon.
Kobo is better than BN and has a lot of potential for international sales for US Indies.

Google can't even figure out how to show authors how many books have been sold unless you download the .csv file. Seriously?
And they don't allow authors to input any keywords. Google. No keywords. Whaat?
 

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I can't speak for Kobo or iTunes, but Play is just set up differently than Amazon. Play is built around its search function to find what you want. So, say, you want to find a paranormal romance about trolls. You search for troll paranormal romance, and it uses its search to study the digital profile it has built about you over the years and ranks the things that it thinks you will most like. Amazon is built 100 percent around browsing, while Play is built around searching. Both have their advantages and disadvantages, but if Amazon's cliffs are any indication, Amazon is more likely to drive you towards popular new releases while Play is more likely to drive you to content that most fits your profile.
 

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[his is squote author=michaelsnuckols link=topic=217694.msg3039104#msg3039104 date=1436132995]
Monopolies can be frightening things.

Going wide with other retailers - and promoting Apple and Google as alternatives - might be a smart idea for the Indie community at large.
[/quote]

It is a smart idea.
 

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dianapersaud said:
Ladyvine and KelliWolfe are both correct.

None of the other platforms can compare to Amazon. If Amazon sat on their thumbs, they would still succeed because the other companies are not innovative enough. I have high hopes for Apple. But given their collusion lawsuit, I don't trust them any more than Amazon.
Kobo is better than BN and has a lot of potential for international sales for US Indies.

Google can't even figure out how to show authors how many books have been sold unless you download the .csv file. Seriously?
And they don't allow authors to input any keywords. Google. No keywords. Whaat?
I still don't know what my Google sales are and I stared at that spreadsheet for five minutes.
 
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1) This: Google just past the one billion device mark last quarter, and Apple devices aren't that far behind. That's a huge base of people that interact with iTunes and Play on a daily basis. As Apple and Google roll out new features (iTunes is going to have something in store very soon and Play is already showing commitment to under price Amazon), these people are going to have no reason to go to a third party to buy their books. I don't think it's even a question at this point. It's just going to happen, and the only real question is how long it will take.

2) To reiterate: Apple and Google are going to take over. It's just a question of how long.

3) Select revenue include Kindle Unlimited and Prime etc. Does it not? So this is not KU beating Nook, it's all of Select beating Nook.

If you consider that all those books are EXCLUSIVE to Amazon it's a very interesting data point.

4) Would love to see revenues for Oyster and Scribd from their subscription models.

Perhaps it's the Unlimited Model that is overtaking normal sales and not KU overtaking Nook.
 

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Discussion Starter · #18 ·
ireaderreview said:
1) This: Google just past the one billion device mark last quarter, and Apple devices aren't that far behind. That's a huge base of people that interact with iTunes and Play on a daily basis. As Apple and Google roll out new features (iTunes is going to have something in store very soon and Play is already showing commitment to under price Amazon), these people are going to have no reason to go to a third party to buy their books. I don't think it's even a question at this point. It's just going to happen, and the only real question is how long it will take.

2) To reiterate: Apple and Google are going to take over. It's just a question of how long.

3) Select revenue include Kindle Unlimited and Prime etc. Does it not? So this is not KU beating Nook, it's all of Select beating Nook.

If you consider that all those books are EXCLUSIVE to Amazon it's a very interesting data point.

4) Would love to see revenues for Oyster and Scribd from their subscription models.

Perhaps it's the Unlimited Model that is overtaking normal sales and not KU overtaking Nook.
KOLL is tiny in comparison to KU for KDP Select. Something like 90% KU and 10% KOLL. And that gap is growing larger and larger.

http://phx.corporate-ir.net/phoenix.zhtml?c=176060&p=irol-newsArticle&ID=1744328

With the new lending libraries launching this month, the KDP Select fund has been increased by $100,000 to $700,000 in October, with a larger increase anticipated in November.
I wouldn't be surprised if the $11 million Fund is broken down as followed:

$10 million KU
$1 mil KOLL
 

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Discussion Starter · #19 ·
Year ending April 30 2010 NOOK EBITA: ?
Year ending April 30 2011 NOOK EBITA: (209 million USD)
Year ending April 30 2012 NOOK EBITA: (261 million USD)
Year ending April 30 2013 NOOK EBITA: (475 million USD)
Year ending April 30 2014 NOOK EBITA:  (218 million USD)
Year ending May 2 2015 NOOK EBITA:  (86 million USD)

Adding all those up equal a loss of $1.249 billion USD (likely more) since NOOK was created.
 

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Briteka said:
It's because BN and Amazon are ebook sellers selling under the old model. Neither one has been able to evolve, and this is going to kill BN quite quickly. Amazon will be fine because they aren't just a bookstore, but their market share will just shrink going forward as Apple and Google grow.
Huhwhat? Where did you get the crazy idea that Amazon is not the innovator in the market?

Amazon is the one with KU, not Apple and Google. The latter two are johnny-come-lately's which sell under the old model, while Amazon keeps coming up with new features. What's more, Amazon is the only one of the three that is primed to develop new ebook markets. Apple and Google get most of their revenue from other means (hardware sales and adverts, respectively) so they are not driven by the same force as Amazon.
 
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