Archive for Business News
Children are reading in record numbers in the last decade, which has propelled billion dollar properties such as Harry Potter, Percy Jackson, Twilight, Hunger Games, Diary of a Wimpy Kid. Not only have these titles done staggering well but it has promoted the success of books with similar subjects and themes and are benefiting from each other’s successes. Over the course of the last two years John Green and Veronica Roth are the highest-selling authors; juvenile fiction is performing so amazingly that 17 of the 20 overall bestsellers in the US during 2014 were books for children.
Nielsen hosted the first annual Children’s Book Summit in Manhattan and produced research for over a four year period. They produced research that the children’s book market has increased 44% in the last decade and 67% of teens read for pleasure. Ironically, although tablet adoption has increased exponentially, 50% still prefer print books over eBooks.
Kristen McLean, founder and CEO of Bookigee provided some interesting information on where books are being purchased. 62% of the purchases are taking place at physical bookstores, such as Barnes and Noble. Juvenile represents 35% of the total physical market over the last 12 months with juvenile fiction largely driving the sales from 2011 to 2014, resulting in “a great variety of publishers seeing positive growth.” Games and activity books as well as crossover products, representing “blockbuster brands bleeding over to nonfiction,” such as Minecraft and Lego, are also raising “very interesting implications.” MacLean suggested that this trend “leads to the rise of lifestyle books in juvenile nonfiction, and popularity of shows like MasterChef Junior.” One surprising find from a study about demographic buying habits showed that 42% of people who purchase children’s nonfiction titles actually have no children: 15% of these buyers purchased the books as gifts, and 27% of them reported buying the books for themselves.
The success of children’s and juvenile fiction has helped Scholastic continue to generate solid revenue. The company reported second quarter 2015 earnings were $665.6 million, compared to $623.2 million a year ago, an increase of 7%. Scholastic affirmed its fiscal 2015 outlook will account for approximately $1.9 billion.
The most exciting trend that this conference produce was there is a strong misconception that youth and young adults spend the majority of their time online, visiting sites such as Facebook and Twitter and not reading. What Nielson found is that they are establishing strong bonds with their friends, which leads to book recommendations being taken very seriously. This has led to a population explosion with Goodreads. Recently, the website reported a record 3.3 million votes cast in the 6th annual Goodreads Choice Award.
The head position at Amazon publishing, is not exactly cursed, but people tend not to last very long. A year into the job, Daphne Durham is leaving the company.
Daphne took over the reigns of the publishing division from Larry Kirshbaum, who had been with Amazon since 2011 and left at the beginning of 2013. Initially Larry served as the vice president and publisher of Amazon Publishing’s New York office and later as editorial director for imprints on both the east and west coasts. He was famous for bringing in big names such as actress and director Penny Marshall and best-selling writer Timothy Ferriss.
Daphne on the other hand had been with Amazon for over 15 years, prior to taking over Amazon Publishing. Instead of focusing on big names, Durham set her eyes on niche markets, such as mysteries, science fiction and religious titles. One of the most interesting things that was accomplished under her watch was looking at the big data of the Kindle e-Book business to find unsigned authors and push into untapped markets such as fan fiction.
In the past, Amazon has always had one person in charge of the publishing division. This obviously has not worked out very well, because the job has been, well cursed. In order to create more fluidity, Amazon is going to be spreading the duties out to two different people, one based in Seattle and one in the critical New York market.
Mikyla Bruder, who is based in Seattle, currently runs global marketing for Amazon Publishing. She will become publisher for Amazon’s Montlake Romance, Thomas & Mercer, Skyscape, Lake Union, 47North and Jet City Comics imprints.
David Blum is based in New York and is best known for being the editor of Kindle Singles. He will take over control of Amazon’s Little A and Two Lions imprints. His mandate is to expand Amazon’s nonfiction publishing under Little A.
Microsoft has announced their first quarterly earnings report for 2015 and
the Surface 3 tablet is seeing massive success. Surface revenues measured $908 million, which is transforming their hardware division into almost a billion dollar business every three months. The company is also building revenue from phone hardware, taking in $2.6 billion from quarterly handset sales through what was once Nokia’s hardware business. Microsoft reported $478 million in gross margin from phone hardware as it continues its effort to build market share for Windows Phones.
Microsoft is betting big on the new Windows 10 OS, which is now in technical preview. This might be a game changer because the Redmond company is adopting the “One Windows” strategy, which will unite phones, tablets, and PCs under a single operating system. Today, the Windows market is fragmented between Windows Phone, Windows RT, and Windows 8 — three separate systems which aren’t fully compatible with each other. With Windows 10, the number-skipping upgrade which will arrive sometime next year, Microsoft will eliminate those incompatibilities with a single cross-platform OS.
In 2002 PayPal became a wholly owned subsidiary of eBay and has been used to facilitate payments on the e-commence site. Due to the increasing pressures of the modern economic reality with Apple Pay, Alipay and Square, eBay and Paypal have agreed to part ways and Paypal will now be its own publicly traded company in 2015.
Devin Wenig, president of eBay Marketplaces, to become CEO of new eBay company following separation and American Express executive Dan Schulman joins PayPal immediately as President and CEO designee for PayPal post-separation.
PayPal has been on pace to overtake eBay’s core marketplace by sales. In the June quarter, the payments unit boosted sales 20% to $1.95 billion and added 4.1 million new active customers from the first quarter, to 152.5 million. PayPal facilitates one in every six dollars spent online, eBay said. At its namesake marketplace, revenue rose 9% to $2.17 billion as the number of active accounts increased by 3.8 million to 148.9 million.
“The payments landscape is hyper-competitive, the pace of change is accelerating and everyone is gunning for PayPal,” said Forrester analyst Denee Carrington. “The split will give PayPal greater agility to help it achieve its full potential.”
PayPal has been expanding beyond online and mobile payments and offering other financial services. It began lending money to small business customers late last year. And eBay bought Braintree, a payment processor used by startups such as vacation rentals site Airbnb and cab-hailing app Uber, a year ago for about $800 million and will be part of the PayPal unit.
Hopefully that now Paypal will be an autonomous entity they could really redeem themselves in the eyes of internet users. We have all heard of the horror stories of Paypal being used to facilitate Kickstarter payments, only to have the money put on hold and the developers have to jump through months of hoops to get any of it back, if they do get any of it back.
BookShout is getting a solid reputation in the publishing industry by delivering eBooks in bulk. The eBooks are redeemed by by using their official app for Android or iOS and many television stations are using the allure of eBooks as an incentive to people during telethons. Today, the company has announced that they have distributed 9.4M ebook codes in the past 12 months, and expects to double that number by early 2015.
With more than 3,000 bulk ebook orders placed by major corporations and universities, BookShout! has experienced accelerated growth as more and more organizations request mass quantities of ebook for events, corporate rewards, and client retention. BookShout! has served Microsoft, Intel, CareerBuilder, Lockheed Martin, Marriott, and Teach for America to name a few.
BookShout! works with more than 2,000 publishing partners worldwide, including HarperCollins Publishers, Macmillan, Perseus Books Group, Simon & Schuster and Workman Publishing—as well as corporations throughout the U.S., U.K., and Canada.
Authors are also getting in on the action by taking eBook cards and text-to-buy campaigns to their speaking events and live online chats. Campaigns may even be set up to allow all attendees of an event to buy the book individually at a pre-set price determined by the publisher.
Barnes and Noble bet big when they decided to forgo hardware design on their latest tablet and instead sourced it to Samsung. This allowed the bookseller to focus on the reading experience and actually devote money to hyping the hell out of it. Apparently their blitz media has earned them the Internet Marketing Association’s (IMA) ‘Innovative Brand Award’ for 2014.
From subway ads to radio station and store integration, NOOK tapped into multiple avenues to get the message out about the new NOOK by Samsung. Created with a hyper-targeted focus in mind, the NOOK ads were designed to be engaging, enticing and inspiring, and to make people want to read even more. Leveraging most every contact channel including email, mobile, online, out of home (OOH) and an online and retail presence in an integrated manner, NOOK created an immersive experience with the goal of capturing the imaginations of potential customers. In addition, NOOK capitalized on the impact of word of mouth and social media by taking the campaign a step further for this launch with one of its most entertaining social media efforts to date, the #NOOKfaces campaign.
“We’re thrilled that NOOK has won the IMA’s ‘Innovative Brand Award.’ The Samsung Galaxy Tab 4 NOOK is the most advanced NOOK ever and we wanted to give this device the exposure it deserved with a creative and imaginative marketing plan that generated lots of excitement and buzz,” said Doug Carlson, Executive VP of Digital Content and Marketing at NOOK Media LLC. “Not only has NOOK demonstrated its commitment to innovation by partnering with Samsung, but we’ve launched the new device in a bold and exciting way that has really resonated with both existing and potential NOOK customers.”
The head of Amazon Video and Music will be leaving the company after a 15 year stint. Bill Carr, a 47-year-old vice president, announced his decision internally Tuesday.It is unclear whether or not a competitor has given him a better offer.
According to the Wall Street Journal Carr has been instrumental in Amazon’s push to compete with Netflix and Hulu in streaming online video, including reaching deals with Viacom and others for exclusive content. He helped oversee the creation of original programming like “Alpha House” and “Betas”. Carr also pioneered the concept of developing a series of television pilots and having Amazon members vote on their favorites to be made into a full series.
The last major project that Carr had a hand in was the unveiling of Prime Music, which is exclusively available to members who pay the annual $99 Prime subscription fee. The service is competing against a number of established players in the market, such as Spotify and Beats Music. Prime Music has a catalog of over one million tracks, contributed from Warner Music Group and Sony Music – as well as from large independent labels.The largest label in the world, Universal has not contributed any material.
Over the course of 2014, Amazon has been relentless in the number of new hardware offerings they have released to the public. They have a new television box, smartphone, Amazon Dash, and 8 new e-readers and tablets. According to a new report, this is just the beginning, as Amazon is hiring more hardware engineers and intends on entering the connected home segment and a new smartwatch.
Amazons research and product development occur at the Silicon Valley based Lab126. They currently have 3,000 full-time employees and is looking to expand to at least 3,757 full-time staff at the office by 2019. Amazon will invest $55 million in Lab126’s operations in Sunnyvale and Cupertino, the agreement posted on the California governor’s website shows.
According to Reuters, Amazon is testing a simple wi-fi device that could be placed in the kitchen or a closet, allowing customers to order products like detergent by pressing a button. Lab126 is also interested in wearable devices, but we will have to adopt a wait and see approach, as some prototypes never hit the market.
The connected home segment is starting to catch on like wildfire. In January, Google bought Nest Labs, a smart thermostat maker for $3.2 billion. In June, Apple announced plans for HomeKit, its own framework for connecting household gadgets. It is currently unknown what Amazons plans are, but we can see an inkling of whats to come with Dash, which allows you to scan bar codes and UPC labels and automatically order them online.
AT&T will be offering customers one free year of Amazon Prime with the purchase of their new internet program. The new offer also comes with a subscription to HBO and AT&T’s version of basic cable for a one-year intro rate of $39 per month. This arrangement makes sense for Amazon as it tries to build a viable streaming video competitor to Netflix, pushing both new content and a huge archive of old HBO shows, which its rival doesn’t have.
Amazon has been offering 3G versions of their e-readers since 2007, with the advent of the first Kindle. The internet access is provided by AT&T, and allows customers to purchase books in hundreds of different countries with no extra fees. The new Fire Phone, which came out a few months ago is an AT&T exclusive, with no options to save money and bundle it on another carrier.
Here is how the new internet package by AT&T works. In order to get the $39-per-month rate, you’ll need to sign on for an entire year of service. There is a $49 activation fee and a $99 installation fee, in addition to renting the digital box for $9.99 a month. If you decide to leave before those twelve months are up, and you’ll have to pay a hefty $180 termination fee.
If you decide to take the plunge and indulge in television over the internet you will get a one year subscription to Amazon Prime. This not only includes their much hyped video service, but also free two day shipping, a free eBook every month and access to Amazon Prime Music.
Amazon is one of those companies that never divulges specific dollar amounts or how many eBooks they have sold. During the holiday season last year they strayed from the normal PR blackouts and proclaimed that tens of millions of members were members of Prime. This got annalists salivating, and we now have potential figures that give us an accurate portrayal of Amazon Primes worldwide numbers.
RBC Capital conducted a research note yesterday and Mark Mahaney said RBC is now estimating that 30 million and 40 million in the U.S. and 40 million to 50 million globally are members of Amazon Prime. Most of this data comes from a new survey that RBC conducted from 4,000 Amazon customers and found that 37% were current Prime members.
According to a recent survey by Consumer Intelligence Research Partners The Amazon Prime has become a significant drivers of Amazon sales, even in light of the recent Amazon Prime price increase from $79 to $99. That means by 2016, the $20 price bump could generate incremental revenue of as much as $1.7 billion. “Prime members spend twice as much, as the rest of Amazon’s customers,” said CIRP co-founder Mike Levin.
Indie bookstores normally are swamped during the holiday season, as people ravenously buy everything in sight. Giving the gift of a good book can actually be a life changing event and HarperCollins has announced a new Holiday Express Shipping beginning November 3, 2014 and running through January 16, 2015. All qualifying orders from participating stores received by 1:00pm (EST) will ship out the next business day or two.
“We are pleased to provide this service to the Indie channel in the busiest time of year in order to help them have HarperCollins titles in stock and meet the demands of their customers,” said Brian Grogan, senior vice president of sales for HarperCollins Publishers.
“We are equally thrilled to be able to offer this additional level of service to independent Christian retail,” said Tom Knight, senior vice president of sales for HarperCollins Christian Publishing. “It is our hope that this program will encourage independent retailers during the critical holiday selling season.”