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Barnes & Noble Nook Razzle Dazzle

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Barnes & Noble (BKS) rolled out the new Nook reader claiming that the inclusion of colour and aiming it partially at kids will be a marketing win. The price point does not skim the bottom of the barrel. The inclusion of colour is only a temporary advantage and will be easily matched by upgrades from competing products. Advertisers will want color to ensure their messages are more compelling.

The children’s market is compelling. You do spend money for the little ones. But it is the parent that spends. No information on how the parent is being engaged. So the children’s market may become an unfulfilled dream.

Barnes and Noble is huge in college and university text books. Students have to buy the material. The value proposition of digitizing learning materials is huge. University students will adopt technology. University students will look to save money. When will the nook play here? Significantly that is.

This is not the compelling e-reader move. So what if the heads of education in the five largest states get together and mandate digitized e-reader style text books and learning materials. The volume would compel text-book purveyors to re-purpose their material and lower costs.

William Lynch, Chief Executive Officer of Barnes & Noble said “reading anything and everything in brilliant color is the killer app…”

Disclosure: George Gutowski writes from a caveat emptor perspective. I hold no positions in stocks mentioned in this post.