What do you make of Barnes & Noble saying they're exploring spinning off its Nook division entirely.
It sounds like they’re starting to realize they’re in trouble and not sure what to do about it.
Like Borders (and Blockbuster before them), Barnes & Nobile has woken up to find themselves living in a digital world with hundred of expensive brick and mortar stores around their necks. They’re only going to get heavier.
At the same time, they’re in a bit of a Catch 22. The brick and mortar stores are probably their greatest asset for selling the Nook. But the more Nooks they sell, the more irrelevant the brick and mortar stores become.
And when they start to close those stores (which will happen), where are people going to buy the Nook? Barnesandnoble.com is not Amazon.com. That’s a huge problem.