Rakuten Goes Into OverDrive
April 1, 2015
If you use a public library or attend school, you might be familiar with the OverDrive system. It allows users to download and read ebooks on a tablet of their choice for a limited time, similar to the classic library borrowing policy. According to Reuters in the article, “Update 2: Rakuten Buying eBook Firm OverDrive For $410 Million In US Push” explains how the Japanese online retailer Rakuten Inc. bought the company.
Rakuten has been buying many businesses in the “sharing economy,” including raising $530 million for Lyft. OverDrive is a sharing company, because it shares books with people. It is not the only reason why Rakuten bought the company:
“Another reason for the purchase is the firm’s reach in the U.S. market, [Takahito Aiki, head of Rakuten’s global eBook business] said. Rakuten has been on a buying spree in recent years to reduce reliance on its home market in Japan. In October it bought U.S. discount store Ebates.com for about $1 billion.”
What does this mean for the textbook industry, though? Will it hurt or help it? When Amazon and other online textbook services launched with cheaper alternatives, the brick and mortar businesses felt the crunch. The cup may be either half full or half empty. Publishers may not be familiar with the sharing economy and may have an opportunity to learn first hand if this deal goes down.
Whitney Grace, April 1, 2015
Stephen E Arnold, Publisher of CyberOSINT at www.xenky.com
Comments
-
- Subscribe to Beyond Search
Feature archive
News archive
-
