Barnes & Noble CEO reaffirms Nook brand commitment

Barnes & Noble CEO reaffirms Nook brand commitment

Summary: Barnes & Noble's CEO argues that the Nook is "undervalued," and that you shouldn't count out its digital book business anytime soon.

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TOPICS: CXO
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Although there have been doubts about the Nook (and e-book readers in general) lately, Barnes & Noble isn't giving up on the brand anytime soon.

CEO William Lynch told CNBC on Friday that Barnes & Noble will continue to reinforce the relationship between the digital Nook e-book brand and its brick-and-mortar stores.

Rebuffing the idea that B&N would be spinning off its Nook unit, instead, Lynch reaffirmed the company's stance on the future of digital content:

The growth is going to be in digital, hence our investments in digital and how we’ve scaled that business. But the physical book business, by any measure and any projection, will continue to be the largest part of the business, and we’ve been growing share there, and in fact growing the business in absolute terms…That is a very profitable side of the business.

Earlier this week, Barnes & Noble said in a statement that it examining how to "unlock" the value of the Nook unit after disappointing sales results -- especially for the Nook Simple Touch reader that debuted in May.

In December, Barnes & Noble reported second fiscal quarter losses of $6.6 million, although there was a silver lining: the recently released Nook Tablet is said to be the fastest selling Nook product in history.

Nevertheless, Lynch argued during the CNBC interview that the Nook brand is "undervalued," and that B&N has established the #2 brand in the digital book business with a value of $1.5 billion after two years.

To see more from the interview, check out the video over on CNBC.

[via PaidContent]

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Topic: CXO

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5 comments
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  • RE: Barnes & Noble CEO reaffirms Nook brand commitment

    Poor support for other media content makes for a poor future for the Nook Line!
    slickjim
  • RE: Barnes & Noble CEO reaffirms Nook brand commitment

    No fun being number two, I suppose. Especially when Amazon are number one - by a good few miles!
    Heenan73
  • Nook Simple Touch

    Simply put - I love mine. It's the perfect size and weight for reading, runs very well, and has a much better interface than the kindle (IMHO).

    This is from an e-book reader standpoint. I have an iPad for the "tablet" experience but can't stand it for reading books. The LCD screen hurts my eyes when I'm trying to fall asleep and read at night or it gets very heavy after a while since I tend to hold it over my head when lying in bed. It's also worthless when I want to read and lay on a beach. At the same time I wouldn't ever consider the Fire or the Nook as an alternative to my iPad which as a tablet is better in almost every way.
    Yensi717
    • RE: Barnes & Noble CEO reaffirms Nook brand commitment

      @Yensi717 you should try the fire before making such claims!
      slickjim
  • RE: Barnes & Noble CEO reaffirms Nook brand commitment

    The stores are not committed. I never know how to buy at a nook at the store. There is never anyone in the nook department. The rest of the sales staff could care less. Walked into a store 30 minutes before closing wanting to buy a nook, left after 10 minutes when no one helped me.
    lodoss900@...