The German media giant Bertelsmann said today that it had decided to fold its online bookselling unit BOL.com into its book club business and close down operations in some countries.
Industry observers suggested that the move marked a step back in Bertelsmann's Internet strategy, especially since, as part of the reorganisation the group, had abandoned plans to list BOL.com on the stock exchange.
Nevertheless, Bertelsmann insisted in a statement that the move would place it in a better position to meet altered customer purchasing habits.
"By integrating our online and offline distribution paths, we are acting earlier than other companies to adjust to a changed customer behaviour characterised by the combined use of different paths for obtaining information on, and buying, media products," the statement said.
BOL.com, launched in February 1999 and present in 16 countries around the world, had originally hoped to rival the leading online bookseller in the US and Germany, Amazon.
It is expected to generate revenues of DM180m (92.03m euros, $81m) this year. However, German media reports said that BOL.com was making heavy losses, while the book club business, Bertelsmann Club, was highly profitable.
BOL.com's operations in Germany, the Netherlands, Sweden, Finland and Britain would all be integrated into the local book club businesses. But the Denmark and Norway branches would be closed.
AFP