Oyster, sometimes referred to as the Netflix for e-books, is now selling e-books, giving subscribers and non-subscribers the opportunity to purchase millions of e-books, according to The Verge.
Prior to this addition, Oyster offered unlimited access to more than 1 million titles to subscribers for $9.99/month. In other words, readers can rent the books, similar to how a Netflix subscription works. Now, however, book lovers can also buy e-books directly from the Oyster app to read on smartphones, tablets, e-readers and online. According to Oyster’s blog, e-books from the Big 5 publishers – Hachette, HarperCollins, Macmillan, Penguin Random House, Simon & Schuster – will be available in its e-book store at competitive prices.
Though e-book sales are not a new idea, they give Oyster an additional, more traditional revenue stream. The new offering also helps Oyster to differentiate itself from Scribd, which offers audiobooks and comics with its subscriptions, but not e-books for purchase.
Proud of its new e-book store, Oyster tells subscribers, “All the Books, All in One Place…you’ll never have to go anywhere else to get a book, because everything you’re looking for is on Oyster.”
Insider Take:
We don’t quite understand why someone would want to buy an e-book versus simply rent it and read it. It isn’t the same as checking out a library book, or buying one, putting it on the bookshelf and reading it over and over. There isn’t true ownership with e-books, but there must be a market for it or Oyster wouldn’t be doing it. With more than 100 million pages read per month, the company seems to know what it’s doing.
From a business perspective, we think adding an e-book store is a smart move. With competitors like Scribd and Amazon in the e-book market, it is good business to find a way to differentiate itself. It is also good to diversify revenue streams, so the company isn’t banking on one product or service.
We presume the relationship with the publishers is a revenue share, so there probably isn’t any extra cash outlay for Oyster. In this scenario, it seems everyone benefits – readers get greater access and some sense of ownership, publishers can grow their customer base and increase sales, and Oyster can satisfy subscribers without limiting itself to one revenue stream.