Amazon seems to have the e-reader market mostly to itself in the US, what with the Nook suffering a lot of bad press thanks to spyware and faulty power adapters. But that won't be the case for much longer as Walmart just signed a deal with Rakuten which will see Walmart become a major player in the e-reader and e-book markets.
Branded an alliance, Walmart will become the "exclusive mass retail partner" for Kobo e-reader devices within the US. What that means is, over 4,000 Walmart stores will start offering Kobo e-readers as well as access to nearly six million e-book titles and audiobooks. There will also be digital book cards available to purchase to then use on a Kobo device or app.
This news is sure to grab Jeff Bezos' attention. Buying a Kindle is easy on the Amazon website, but availability at retail locations is quite limited. Now Kindle has to compete with an alternative e-reader being available at over 4,000 retail stores, as well as the marketing campaigns and deals Walmart is sure to run regularly to help sell the device.
Alongside the Kobo e-reader, a co-branded Walmart/Kobo app will be offered on iOS and Android allowing all e-book/audiobook content to be accessed even without an e-reader. A desktop app is also planned for later this year.
For Rakuten, it's going to significantly increase sales of Kobo hardware in the US. It couldn't have found a better retail partner to form an alliance with in that regard. For Walmart, it's a way to remove an advantage from Amazon, with that advantage being Amazon has an e-reader and e-book business where as Walmart doesn't.
The Rakuten deal also extends to Japan, but with a different focus. Walmart subsidiary Seiyu GK will create a new online grocery delivery service in Japan which will be known as "Rakuten Seiyu Netsuper." It will launch in the second half of 2018 and will be a mix of dedicated fulfillment centers as well as deliveries direct from existing Seiyu stores.