Waterstone's In "Far-Reaching" Alliance with Amazon to Sell Kindle

PublishersLunch

Already running late with its promised ereading initiative, Waterstones announced "a far-reaching partnership" with Amazon "to launch new e-reading services and offer Kindle digital devices through its UK shops." Downplayed in coverage of the announcement is that, even with a plug-and-play solution, Waterstones still won't be ready to launch the venture until sometime "in the Autumn." First they need to install wi-fi in their stores (which apparently they had never done previously).

Waterstone's managing director James Daunt says in the press release, "The best digital readers, the Kindle family, will be married to the singular pleasures of browsing a curated bookshop.... It is a truly exciting prospect to harness also the respective strengths of Waterstones and Amazon to provide a dramatically better digital reading experience for our customers." In another sign of Waterstone's current web prowess, a more extensive video announcement via YouTube had registered a big 309 views this morning. Daunt says "we needed to solve the digital question" and asked themselves, "what is the very best way that we can do that?"

Amazon ceo Jeff Bezos says in the announcement: "Waterstones is the premier high street bookseller and is passionate about books and readers - a dedication that we share deeply. We could never hope for a better partner to bring together digital reading and the physical bookstore." 

While Amazon has had a number of retail partners for the Kindle devices, this is their first ereader alliance with a book chain. (Those with good memories will recall another book chain that partnered with Amazon, outsourcing their web store to the etailer: Borders.)

Daunt says the initiative is designed to give customers what they want--which resurfaces his interview from last December in which he argued the opposite, claiming Amazon "never struck me as being a sort of business in the consumer's interest. They're a ruthless, money-making devil." At the time, Daunt was still saying they were "inventing one [ereader] of our own."

Having walked into a puff piece over the weekend claiming Waterstone's digital initiative would be "imminent" and quoting Daunt saying, "We'll be different from Amazon, and we'll be better" (while bizarrely implying that publishers are sinisters masterminds behind "the semi-corrupt practice" of making books returnable), the Guardian repents today with a headline that reads, "Waterstones kindle a deal for destruction with Amazon."

The big UK publishers already knew about the shift in Waterstone's strategy, and Hachette UK head Tim Hely Hutchinson tells the Bookseller, "I am fully supportive. It should be good for Waterstones and good for customers and readers. We think it is a good deal and are supportive." 

Managing director of Alma Books Alessandro Gallenzi expresses the surprise of smaller publishers, who were not informed ahead of time. As he underscores, it was just recently that publisher gave in to Waterstone's reset to a 60 percent discount (or thereabouts) when buying inventory. "We see this as something going in the opposite direction of what Waterstones promised only a few months ago." 

By the Bookseller's account, Waterstone's will receive a share of the revenue from ebooks sold via their in-store wifi--but not, reportedly a cut of all ebooks purchased from devices sold in their stores (which is what some other ereading platforms provide).

The next question is whether Barnes & Noble's international launch of Nook, which is to include the UK, will come prior to the execution of Waterstones partnership with Amazon.
Footnote:
Robert McCrum interview with James Daunt in The Observer.