Thursday, October 22, 2015

Nook Unveils The GlowLight Plus

Publishers Lunch


Following a premature leak on their own web site a month ago, on Wednesday Nook formally launched its first new ereader in two years, the GlowLight Plus. The new 6.9-ounce device -- slightly heavier than its predecessor -- is hailed as the company's "first waterproof and dustproof device," and therefore perfect "for worry-free reading anywhere – including the bath and the beach." As in the past, a promotion offer that runs through the end of the year gives device buyers three free ebooks from a selection of 20 participating titles, three free magazines and a $5 content credit.

"We're excited to introduce the best ever Nook eReader to readers across the country, particularly those who have requested a great purpose-built reading device that is both durable and portable,” said Barnes & Noble chief digital officer Fred Argir in the announcement. "The first waterproof and dustproof Nook is ready to take anywhere, offering an immersive reading experience that can be enjoyed in bed and bright sun given our most advanced display with built-in light. We invite customers to visit their local Barnes & Noble store to learn more about this beautifully designed, lightweight device that makes a perfect gift for themselves or anyone who loves to read."

In the two years since Nook last launched a new E-Ink device of their own (as opposed to the co-branded Samsung tablets, which have sold well below initial targets), the division has shed sales and market share at a significant rate, and the company needs to regain active device owners to drive more content sales. As Jaime Carey said in their last investor conference call, "In terms of how to grow content, we're looking to continue the growth of device sales.... We'd obviously need to increase the downloads of the Nook app, and we need to look at third-party arrangements that are going to give Nook a wider distribution platform for its content. Those are the three ways we intend to grow the business."

Over the last two reported quarters alone (covering February through July) the reported Nook digital content sales fell by approximately $37 million. Given the high proportion of agency ebook sales (where the retailer only books their commission), you could hypothesize that declines at Nook alone count for as much as $70 million in lost ebook sales for publishers -- which is an interesting number, since the decline in AAP ebook sales for January through May was $68 million. 

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