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Nate Hoffelder

Nate Hoffelder

Barnes & Noble Reports Revenue Down 3% for the Year, Nook Revenue Down 17%

It turns out that the positive revenue report from the third quarter was a fluke rather than the start of a turnaround.

Barnes & Noble reported sales and earnings for its fiscal 2019 fourth quarter and fiscal year on Friday. Its sales totaled $3.6 billion for the full year and $755 million for the quarter, falling 3.0% and 3.9% from the prior year periods, respectively. Comparable store sales declined 2.3% for the fourth quarter and 1.9% for the full year.

Nook revenues totaled $92 million for the fiscal year, a decline of 17% from the previous year.

The consolidated fourth quarter net loss was $18.7 million, compared to a loss of $21.1 million in the prior year. Fiscal 2019 net earnings were $3.8 million compared to a net loss of $125.5 million  in the prior year.

Those details, plus the SEC filing, is all we will have to go on because B&N has announced that they will not be hosting a conference call this quarter to discuss the results. They’ve pointed at the Elliott deal as their justification.

That deal won’t be completed until October, so this is more of a cop out than a valid justification.

image by JeepersMedia via Flickr

Hachette Changes eBook Terms to Further Screw Over Libraries

The American Library Association is holding its annual conference later this week in Washington DC, and I know what all the librarians will be talking about.

Hachette announced on Monday that it is changing the terms under which it licenses ebooks to libraries. They will continue to be ruinously expensive, but now they are also going to come with expiration dates. PW reports that effective 1 July, Hachette will shift from perpetual access licenses  to what they are calling the "two-year metered model", ie ebooks with expiration dates.

A Hachette spokesperson told PW that most HBG titles will likely be priced under $65, and there will be no limit on the number of lends within that two-year period, on a one-copy/one-user basis.

The part that should really piss you off, folks, is that probably really is a lower price that Hachette charged under the old model.

And it certainly has the ALA ticked, although they would not put it so bluntly.

“The elimination of perpetual ownership will reduce long-term access to ebooks and digital audio books and increase challenges to the long-term preservation of our nation’s cultural heritage,” said ALA President Loida Garcia-Febo. “While the announcement includes some positive changes, the model will further limit affordable access to reading for 172 million U.S. library card holders.

Hachette is the third major trade publisher in the past year to change the terms it offers libraries. The first was Macmillan, which started windowing some library ebooks last July. It delayed licensing new releases from Tor Books to libraries for four months after release under the bogus claim that library ebooks were hampering consumer ebook sales.

And then in September, PRH changed the terms it offered to libraries. Its current license terms for library ebooks are similar to Hachette’s new terms; the ebooks are both expensive (up to $55), and expire after two years.

image by The City of Toronto via Flickr

Audible Renames Audible Romance Package as "Audible Escape"

Audible launched its Netflix-style subscription service in late 2017, the focus was strictly on romance audiobooks. Now it is beginning to look like Audible will be expanding the program to include more genres.

I just read in an audiobook narrator group on Facebook that Audible is renaming the Audible Romance Package as "Audible Escape". Audible has yet to update the description, but they did add a note to the page on their website.

The note under the banner reads:

We are now Audible Escape. The Audible Romance Package will be changing its name to Audible Escape. Same great unlimited listening, with a new name and new look.

Is it just me, or does that look like Audible is going to expand the service to include SF and other genres?

I get that impression every time I look at it, but I am hoping I am wrong.

The Audible Romance Package was a great deal for subscribers but a terrible  deal for authors and narrators. Subscribers could listen to as many audiobooks for a flat monthly fee, but that flat fee had to be divided among all the authors in the program.  As a result, one audiobook listen in Audible Romance netted authors less than a tenth of what they would have received for a retail sale. The payment terms were in fact so bad that a huge number of authors have pulled their books from that service.

And now Audible could be expanding Audible Escape to include additional genres.

God, I hope I am wrong on that.

Readerlink is Working on Higher Bid For B&N

It seems last week’s reports of B&N’s acquisition were greatly exaggerated.

The WSJ reports that book distributor Readerlink is working on a bid for Barnes & Nobles that would top the $683 million deal negotiated by hedge fund Elliott Management.

The purchase agreement with Elliott has a claue that says if B&N strikes a deal with a third party before 11:59 p.m on 13 June, Elliott would be entitled to a payment of up to $4 million. If the deal is struck after the 13th, Elliott would get $17.5 million.

The WSJ said that Readerlink would consider making a bid before the cutoff date if it can get the financing together in time, adding that the company may join with another investor.

Readerlink did not respond to a request for comment, while Elliott and Barnes & Noble have each declined to comment.

Wow – can you beleive there are actually two companies that want to buy B&N, and not just so it can be stripped for parts?

image by JeepersMedia via Flickr

PRH Buys Half of F+W Media At Auction, Including Half of Writer’s Digest

Do you know that story in the Bible where Solomon orders a baby cut in half in order to settle a dispute about who was the mother?

One point of that story was that cutting the baby in half wasn’t a satisfactory solution, but apparently whoever is managing the F+W Media bankruptcy sale wasn’t paying attention.

PW reports that Penguin Random House has bought the rights to the books published by F+W Media.

Penguin Random House has posted the winning bid to acquire the book publishing assets of F+W Media. Sources told PW that two companies made offers for the assets earlier this week. The U.S. Bankruptcy Court for the District of Delaware is expected to approve the bid at a sale hearing scheduled for Monday, June 10.

“We are pleased that Penguin Random House recognized the value in our esteemed portfolio of books and we wish them all the best going forward," Gregory J. Osberg, CEO of F+W Media, said in a statement.

The problem with this deal is that it is neither a smart nor logical way to split the company.  F+W Media wasn’t organized by function so much as topic. Each of its business units included multiple activities focused on a single audience. Writer’s Digest, for example, published books and a magazine, offered online courses, and also had a conference.

PRH bought the rights to F+W’s books, but not anything else. While I am sure they are quite satisfied with the half of the baby company they are about to eat, it really sucks for the rest of F+W Media because the remainder of the company is now worth considerably less than it was before.

This wasn’t a sale so much as an organ harvest, and it leaves the rest of F+W media hoping that someone comes along and buys the rest of the carcass before it gets thrown down the slaughterhouses waste chute.

Citing  liquidity issues, +W Media filed for bankruptcy in March 2019. The publisher only had about $2.5 million in cash available and $105.2 million in outstanding debt, so it petitioned the court for bankruptcy relief in order that a sale could be organized.

image by ActuaLitté via Flickr

 

Confirmed: Barnes & Noble to be Acquired by the Hedge Fund that Owns Waterstones

For the longest time now it’s looked like Barnes & Noble, with no savior in sight, was going to be killed by the current management.

Now a potential savior has stepped forward. The WSJ reports that the hedge fund Elliott Management Corp is the lead bidder in an auction to acquire B&N. This is the same hedge fund that acquired a controlling interest in Waterstones last spring.

Update: CNBC says B&N is being acquired by Elliot for $683 million.

This is still in the rumor stage, but they’re saying that a deal could be struck in the next few days. Should Elliott win the auction, James Daunt, founder of Daunt Books and CEO of Waterstones, would take over management of Barnes & Noble.

I hope this rumor comes true; it would mean that B&N had a better than even chance of getting turned around. Daunt has turned around Waterstones, so if there is anyone who could rescue B&N, it would be him.

Of course, it also means that B&N would quickly sell off the Nook, probably to Kobo.  That division is a loser, and the new management is going to get rid of it ASAP.

Barnes & Noble currently operates over 600 stores and had a stock market capitalization of around $336 million as of Wednesday evening. The stock price is currently trading up 31%, at $6.03.

image by Tools of Men via Flickr

 

Apple Books to Get "Reading Goals" Feature

Yesterday Apple announced changes to the iPad’s OS that will positively affect how you can use the iPad to create. That was cool, but it’s not the only thing worth noting in yesterday’s news dump.

Teleread brought my attention to a new feature called "Daily Reading Goal" that will be coming to Apple Books.

Here’s how Apple described the feature:

Read a book or listen to an audiobook for five minutes while in line for coffee, on your commute, or before bed to achieve your Daily Reading Goal. Build streaks to celebrate your achievements and share books you’ve finished with the Books Read this Year collection.

What do you think of the news?

Me, I don’t care about gamified reading (it puts too much focus on the wrong thing), but if I did then I would be using Kobo’s badges instead. They have a whole host of reading badges that absolutely dwarfs Apple’s paltry single reading stat, and Kobo’s had those badges for years and years.

How about you?

With the Launch of iPadOS, Apple Finally Starts to Un-Hobble the iPad

For the longest time now users have complained that software on the iPad was crippled compared to macOS or Windows while at the same time Apple has insisted the iPad is a PC replacement (a claim that is true only if you aren’t using the full abilities of your PC).

Yesterday Apple conceded this round of the debate. One of the announcements at WWDC yesterday was iPadOS, a new version of iOS that will include things like better support for running multiple apps in windows, keyboard shortcuts, and external storage.

Edit: There’s an iPadOS preview page with more info.

For starters, the new iPadOS will feature a redesigned home screen that takes advantage of the iPad’s larger display.

Apple also plans to offer a desktop quality web browsing experience. I hope this includes ad-blocking, and other extensions, but reports from WWDC say that iPadOS would  display the desktop version of a website (a feature we already have on the iPad, actually) and would gain better compatibility for web apps like Google Docs.

And iPadOS will even support USB mice.

https://twitter.com/stroughtonsmith/status/1135653636145590273

Apple also revealed yesterday that Safari for iPadOS will include about 30 new shortcuts, including:

  • Use default font size in Reader (Command + 0)
  • Open link in background (Command + tap)
  • Toggle downloads (Command + Alt/Option)
  • Open link in new window (Command + Alt + tap)
  • Use selection for Find (Command + E)
  • Email this page (Command + I)
  • Open link in new tab (Command + Shift + tap)
  • Decrease Reader text size (Command + -)
  • Zoom in (Command + +)
  • Zoom out (Command + -)
  • Save webpage (Command + S)
  • Change focused element (Alt/Option + tab)
  • Focus Smart Search field (Command + Alt/Option + F)
  • Dismiss web view in app (Command + W)
  • Increase Reader text size (Command + +)
  • Download linked file (Alt + tap)
  • Add link to Reading List (Shift + tap)
  • Close other tabs (Command + Alt/Option + W)
  • Scroll around screen (arrow keys)
  • Paste without formatting (Command + Shift + Alt/Option + V)
  • New Private tab (Command + Shift + N)
  • Actual size (Command + 0)
  • Open search result (Command + Return)
  • Toggle bookmarks (Command + Alt/Option + 1)

The keyboard shortcuts will work with Apple’s Smart Keyboard or any third-party Bluetooth connected keyboard,.

There’s also going to be a new compact layout keyboard mode for the iPad, one that shrinks the onscreen keyboard down to only occupy a fraction of the screen space. I for one am really looking forward to it; the keyboard is huge when the iPad is in landscape mode.

And last but not least, iPadOS will support external storage such as thumb drives and card readers; just buy an expensive converter, and then plug the storage in, and you can access the storage from the Files app.

Due to be released in the fall, iPadOS will be compatible with the iPad Air 2 and later, all iPad Pro devices, the fifth-generation iPad and later, and the iPad mini 4 and later.

9to5Mac, MacRumors

Kobo Adds Parental Controls in Latest Firmware Update

Kobo rolled out a new update this week that parents, schools, and anyone else who wants to restrict access to their ereader will appreciate.

In addition to a couple minor tweaks including search improvements and better formatting in the TOC, Kobo has also added the option of setting a PIN that locks out the web browser and the Kobo store.

You can now set the pin and then hand your Kobo to anyone secure in the knowledge that they can’t buy books on your account.

This update will be automatically downloaded to your device over the next few weeks, but if you don’t want to wait, you can find a download link over at MobileRead.

Here’s the changelog for firmware update 4.15.12920:

  • Parental controls: You can set a 4-digit PIN that must be entered to access the store and web browser on your eReader. To turn it on, go to Settings and select Accounts.
  • Indented table of contents: If your book’s table of contents contains multiple levels, it will be indented for better readability.
  • Search improvements: Typing is now more responsive when searching.
  • Wifi now reconnects more quickly before you search the store, allowing search suggestions to appear as you type.
  • Fixed: Previously, when reading .MOBI books, your progress was not remembered.

Why College Libraries Are Going Bookless

We’ve all read the news stories about this college or that college removing books from their libraries. Stanford was one of the first to go bookless back in 2010, and many more colleges have followed suit. This includes Florida Polytechnic University, which opened a bookless library in 2014, and the University of Michigan, which reopened a medical library in 2015 but left the books in storage.

From the Toledo Blade:

The University of Michigan has reopened its Taubman Health Sciences Library after a $55 million overhaul and rethinking of how a library for medical students should function.

Hundreds of thousands of books were moved to an offsite location and are available on demand for delivery, and by becoming “bookless” the school said that frees up space for medical student education. The facility on the school’s Ann Arbor campus officially reopened over the weekend.

You can find more details in the U of M’s announcement.

While a traditionalist may object to a library without books, the fact of the matter is libraries have always been more than warehouses for books. Academic libraries in particular are used more for study than for storing old and possibly outdated books.

Or as one retired librarian framed it over on The Passive Voice:

It’s about education and what works best to teach students. Just being able to browse shelves of old books, when medical information turns over about every five years, is not enough. Electronic databases with full-text articles and other online information are more accessible and more current. Browsing online is far superior to looking at shelves. Collaboration and group learning has been shown to be far superior to the solitary, no-feedback, one-way lecture of the physical book and doing it in the library is great.

And just so you know, UM’s books had been moved to storage a couple years ago when the renovations began. In effect, the library had gone bookless a couple years ago with little or no negative impact on the students.

Students simply don’t need the books taking up the space, not when they mostly used for studying, as another librarian over at The Passive Voice:

In 2009 I worked at a legal research library. Very few students ever got a book off the shelf. It’s all online. I would reshelve, at most, maybe 30 books a day.

Research libraries are NOT browsing libraries for the most part. You have a specific book you want to find in most cases. Usually people would ask me to fetch it without ever entering the stacks.

The stacks were used primarily for studying, the tables and chairs and couches were used extensively.

That librarian went on to add that when a student requested a book, it was usually either on reserve behind the circulation desk or in storage. Most of the rest of the books simply weren’t required,  so they were taking up space which could be put to better use.

And frankly, the book-less library is simply the latest stage in a trend that has been building for over ten years now. As information becomes easier to access online, many categories of books have become redundant.

Phone books were the first to go, followed by atlases. Both were replaced by online phone books, map sites, etc. Guidebooks and factbooks were the next in the trash bin, and now some libraries have found that their entire collections can be pushed into the back room so more space can be dedicated to learning.

I expect the trend to continue to grow, but I don’t expect it to spread. Bexar County Public Library notwithstanding, the book-less library is an idea that won’t work in every situation.

Public school libraries, for example, can’t go book-less because they frequently lack the funding to do so. But most college libraries will look like Taubman Health Sciences Library over the next ten years, if not sooner.

KDP Reports Dashboard Now Has a Royalties Estimator

I have just heard via the 20Booksto50K group on Facebook that Amazon has added a new royalty estimator to the KDP Reports dashboard that launched last November.

I have no Kindle ebook sales to speak of, but according to the description:

The Royalties Estimator allows you to estimate your royalties in a single currency of your choice. Because you have at least one book with pages read from Kindle Unlimited, you can estimate the KENP royalties before the KDP Select Global Fund is announced.

The Royalties Estimator is a data analysis tool. Everything on the estimator page is an estimate and won’t match your actual royalty earnings. For official earnings records, see the Prior Months' Royalties and Payments reports.

What do you think of it?

Xiaomi iReader A6 Features a Color-Changing Frontlight, Audio,

A reader just clued me in on the iReader T6, the ereader I wrote about earlier this week. It turns out it was actually released last April, not this one. The new device is actually the iReader A6, an ereader that looks quite a bit likethe Tolino Vision 4 HD, and it launched a couple months ago.

The iReader A6 has a 6″ Carta E-ink screen like the T6, but that is about all it has in common. The A6 is also waterproof, and has a color-shifting frontlight. This ereader also has a built-in speaker and a microphone (for recording voice notes). It supports both playing MP3s and text-to-speech, and it can pair with speakers via Bluetooth or its Type-C port.

Measuring 7.8mm thick, the A6 is a little thicker than its predecessor. It is also a little shorter, and is waterproof up to a depth of 1 meter (it is certified for the IP67 standard, which means it is also dust proof). This ereader has a 1.5Ah battery, and weighs 166 grams.

This ereader sold for 998 yuan (about $144 USD) when it went up for pre-order a couple months ago.

sohu.com

 

Google Play Books is Cutting Out the Middleman, Now Wants a Direct Relationship with Authors and Publishers

Many authors and publishers use a company such as PublishDrive or Draft2Digital to handle their distribution to smaller ebook retailers. They trade a small cut of their revenue for less hassle in managing their ebook offerings across multiple smaller ebookstores whose sales do not justify a direct relationship.

One would think that it is a good deal all around. Google, however, would disagree.

I’ve just heard about a policy Google started enforcing a couple months backs. It seems that Google now wants all authors and publishers with titles in Google Play Books to have a direct account with Play Books.

The change in policy was first mentioned by PublishDrive a little over a month ago (Dale Roberts covered it at the time) but I first heard about it today in a forwarded email from Draft2Digital (Thanks, Steve!).

D2D informed its users of the change, and assured them that D2D would continue to manage existing titles in Play Books on their behalf. D2D will not, however, be distributing new titles to Play Books. And because the policy effectively requires D2D to manually manage each author’s account, they also cannot offer all of their services for books in Play Books.

What this policy looks like to this blogger is Google squeezing out the middlemen. It’s not clear why Google is enforcing this policy (could it be a result of Google’s rampant piracy problem of a few years ago?) but it is going to make it harder for distributors to operate.

Email:

For the last couple of months, we have been distributing titles to Google Play in a public beta program. As a beta, we anticipated that there would eventually be some changes and updates to the program, to incorporate what we’ve learned, as well as any policy updates from Google..

One such policy update is that Google Play now requires all authors and publishers to have a direct account with Google.

Though this change impacts how D2D distributes to the Google Play platform, we have been informed that Draft2Digital can continue to manage direct accounts on the author’s behalf. However, this new policy does create some challenges.

Google’s requirements do not scale for a service provider with 60,000 clients, which means that distribution to Google Play will require a more time-consuming process on our end. This method of distribution would also prevent us from offering you our full suite of services on the Google Play platform, though you will continue to receive these services for our other sales channels.

Effective immediately, we have temporarily suspended all new title distribution to Google while we investigate and discuss solutions to Google’s requirement. 

If you believe that you would be unable to distribute your titles to Google Play without the use of Draft2Digital’s services, we encourage you to contact [email protected], and to explain why you depend on Draft2Digital to make distribution to Google Play convenient and efficient.

Please be polite and cordial in your communications with Google
. Policies such as these, even if misguided, are meant to protect everyone’s best interests. But I do recommend that you stress what Google is losing by enacting this requirement, and I would encourage you to request that D2D be made an exception to this policy.

We ask that you please be patient as we work through implementing the best possible solution for you in this very challenging situation. We will continue to keep you informed about progress and changes as they happen.

Xiaomi iReader T6 Features a 6″ Carta E-ink Screen, Retails for $135

Xiaomi’s first ereader is a fairly ordinary looking black rectangle that would be hard to pick out of a lineup.

The iReader T6 runs a proprietary version of Linux on a 1GHz Freescale iMX CPU with 1GB RAM, 8GB internal storage, and Wifi.

Its 6″ Carta E-ink screen has a screen resolution of 1448 x 1072 with frontlight and capacitive touchscreen. Measuring a mere 7.4mm thin, the T6 has a 1.5Ah battery and weighs 160 grams.

The iReader T6 supports several common ebook formats, including Epub, Mobi, PDF, and more, and is now selling in China for 928 yuan, or about $135 USD.

https://www.youtube.com/watch?v=aidjISdBfxc

Reedsy Has Launched an Epub to Mobi Converter

Amazon still won’t convert a user’s Epub ebooks to Kindle format, but luckily there are alternatives such as Calibre or the converter Reedsy launched a few weeks ago.

I got an email from Reedsy on Friday which brought the converter to my attention. I didn’t have a chance to play with it until today, however. The converter has a simple interface; you just drag your Epub file over the window, and let go. You’ll then be prompted to enter your email so the resulting Mobi ebook will be sent to you, and that’s it.

I tested the converter just now. The Mobi I made from an Epub file arrived quickly and looks just as good as the the Mobi I got from from the publisher, although Reedsy’s file is well over twice the size.

All in all, it’s always good to have another option.

Have you tried it yet?

Reedsy Epub to Mobi converter