By Jeffrey A. Trachtenberg
Subscription book service Oyster is expected to unveil an
e-bookstore Wednesday that will allow consumers to purchase titles
on an a la carte basis.
New York-based Oyster, launched in 2013, had previously only
offered a $9.95 a month all-you-can-read subscription package that
allowed consumers to choose from more than a million titles.
For the new e-bookstore, Oyster has struck deals with the
country's five largest publishers and others, including Houghton
Mifflin Harcourt Co. and the Perseus Books Group.
Many publishers want to sell their digital titles as widely as
possible to lessen their dependence on market leader Amazon.com
Inc.
Amazon last year was involved in a lengthy dispute with
Lagardere SCA's Hachette Book Group over e-book terms before the
two companies reached agreement in November. HarperCollins
Publishers, which like The Wall Street Journal is owned by News
Corp, is negotiating a renewal of its contract with Amazon.
Oyster offers publishers another opportunity for publishers to
reach readers.
"Publishers have plenty of reasons to participate," said Amy
Rhodes, a partner in publishing consultants Market Partners
International Inc. "What this also suggests is that the
subscription model has limitations in terms of appeal, so why not
add a bookstore? My guess is that this is an easy add-on for
Oyster."
Still, it is unlikely Oyster's nascent service alone will
significantly tilt the balance of power in e-publishing. Some
publishing executives said it is unclear whether Oyster's retail
efforts will generate significant revenue.
The new Oyster offerings will be presented alongside books
Oyster users can access via their subscription. Rival subscription
services include Scribd Inc. and Amazon's Kindle Unlimited
program.
Eric Stromberg, Oyster's CEO, said in an interview that many
consumers who once read digital books on dedicated e-readers are
now using apps on their tablets or phones to access content. That
transition is making it easier for companies such as Oyster to sell
digital books because readers can choose from a variety of
apps.
"We're focused on being the essential app," he said. "Putting
retail together with subscription in one place is a comprehensive
offering for readers."
Mr. Stromberg declined to disclose Oyster's subscriber
count.
The five major publishers include Penguin Random House, majority
owned by Bertelsmann SE & Co.; Macmillan, a unit of unit of
Germany's Verlagsgruppe Georg von Holtzbrinck GmbH; CBS Corp.'s
Simon & Schuster; HarperCollins Publishers, and the Hachette
Book Group. Neither Penguin Random House nor Hachette participate
in Oyster's subscription offering.
Mr. Stromberg said he believes many of the Oyster books will be
competitively priced. However, he said that Oyster sees itself as
competing on other factors as well.
"Over time, readers will make their choices as to where they
read based on discovery, design and overall user experience," he
said.
Write to Jeffrey A. Trachtenberg at
jeffrey.trachtenberg@wsj.com
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