This May Be Barnes & Noble's Final Mistake
If Barnes & Noble (NYS: BKS) is going down, it's going to sink with pride on its side.
The cavernous bookstore chain made waves yesterday, informing Bloomberg Businessweek senior reporter Brad Stone that it will not stock books put out by Amazon.com's (NAS: AMZN) fledgling Amazon Publishing arm at its retail stores.
Barnes & Noble claims that Amazon's already fragmenting the industry through online exclusivity of some titles. If Amazon wants to play that way, why should Barnes & Noble aid Amazon's plans for global domination?
The tactic may make sense on paper, but just wait until Amazon Publishing has a hit on its hands and the few people still blindly making their way to Barnes & Noble to purchase leafy reads find that the trip was wasted. Oddly enough, Barnes & Noble will offer Amazon Publishing titles through its bn.com website.
Think about that for a bit. Barnes & Noble is taking a stand, but it's going to be referring people to its website where the book will be available. It's bad enough that Amazon is encouraging real-world shoppers to do some comparison shopping in cyberspace to get a better deal. Now we have Barnes & Noble moving the e-tail revolution along?
Amazon Publishing is gaining momentum. It inked a deal with Houghton Mifflin Harcourt for distribution just last week.
This is an industry that can't afford to play favorites. Do you think it mattered to Amazon that Houghton Mifflin Harcourt was teaming up with Pearson (NYS: PSO) and McGraw-Hill (NYS: MHP) to roll out $15 digital textbooks through Apple (NAS: AAPL) the week before that? Of course not. Apple and Amazon are becoming fierce rivals in the tablet realm, but Amazon can look past that in realizing that Houghton Mifflin Harcourt will enhance its distribution -- just as Barnes & Noble stores will feel woefully incomplete the next time that Amazon Publishing has a hit.
Barnes & Noble may have been in a no-win situation, but this just makes it more likely that it will have to concede defeat sooner.
The popularity of e-readers, smartphones, and tablets opens the door for some surprising Wall Street beneficiaries. Read up on three hidden winners in a free report. If you wait for the report to show up on your Nook, you may be too late to the party, so check it out now.
At the time this article was published The Motley Fool owns shares of Amazon.com and Apple. Motley Fool newsletter services have recommended buying shares of Apple and Amazon.com, as well as creating a bull call spread position in Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.Longtime Fool contributor Rick Munarriz does not own shares in any of the other stocks in this story. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.