From Publishing Perspectives:
You’ll remember Publishing Perspectives’ January article on Rakuten Kobo’s plan to re-enter the American market–generally thought to be Amazonian territory–through a new partnership with Walmart.
On Tuesday (August 21), Walmart eCommerce’s general manager for entertainment, Mario Pacini, has gone onto the company’s blog pages to announce that the advent of Walmart Ebooks by Rakuten Kobo is at hand. The program has its landing page in place, with a “US$10 off your first ebook or audiobook” offer and–perhaps of greatest eventual significance in these audio boom-times–a 30-day trial on a $9.99-per-month audiobook subscription.
Once the customer clicks into the Walmart page for a category of interest–ebooks or audiobooks–she or he is taken to a Rakuten Kobo page. Choose hardcover or paperbacks, and you remain on Walmart’s pages. Michael Cader at Publishers Lunch is reporting that it appears a consumer will need a Walmart account, rather than using a Kobo account.
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To stay with audiobooks for a moment, the Kobo-Walmart audiobook offer undercuts by $5 the Amazon Audible subscription. Both subscriptions provide one audiobook monthly, Audible for $14.95, Walmart Ebooks by Rakuten Kobo for $9.99.
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And more broadly, this is a potentially pivotal move for Kobo. While the company has described its “strategy from day one”–that’s Kobo CEO Michael Tamblyn using a favorite Amazon phrase, “day one”–as “partnering with the world’s best retailers so that they can easily offer their customers the option of reading digitally.” And it may finally be a way into the big continent-spanning market down the road from Toronto.
Despite partnerships with independent bookstores through the American Booksellers Association, Kobo’s presence in the States has never moved past single digits in market share, although it has maintained the home-team advantage “up north” in Canada.
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However, expect no one in Seattle to break out in a sweat here. Amazon’s Kindle ecosystem is profoundly dominant in the American marketplace, tied as it is into the Amazon Prime amalgam of advantages to retail consumers. The retailer is effectively a service-member of many US families now, the unquestioned go-to for everything from tonight’s movie to Saturday’s lawnmower and the kitchen pantry’s automatically restocking staples.
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Some might say this is stooping to conquer, but if the money comes in, Tokyo and Toronto may not be dismayed that American consumers are saying, “Oh, I got that ebook from Walmart” or “Shh, I’m listening to my Walmart book.”
At Inc, Justin Bariso, in covering on Monday (August 20) Walmart’s strong earnings report, points out that while the chain’s huge fleet of brick-and-mortar big-box stores grew at 4.5 percent, its e-commerce business, where Kobo stands, great at a rate of 40 percent, in CEO Doug McMillon’s plan, precisely to better compete with Amazon. The Rakuten Kobo element now can be seen standing beside McMillon’s steps toward more up-market branding in areas like fashion, in which Tommy Hilfiger, Calvin Klein, Donna Karen and other labels are coming in with Lord and Taylor.
Link to the rest at Publishing Perspectives
PG says competition in the ebook space is good for indie authors. Among other things, it reduces the possibilities that anyone will take authors for granted.