Bypassing the bookstore

????NACS says bookstores are preparing for a future with digital products. In July 2008 the association launched NACS Media Solutions, a device-agnostic service that works as a conduit between publishers and stores, helping to distribute content to a variety of stores and websites, on a range of devices.

????But should students demand content on the iPad, bookstores will be locked out. Apple's (AAPL) current App Store and iBookstore sales models give publishers the lion's share of a 70-30 revenue split, and cut out the schools entirely. Meanwhile, in bookstores' current distribution model, colleges pocket, on average, 33% of the price of a new book. "What's going to be the most attractive [sales channel] to us as a publisher," says Kranenburg, "is the one that's the most successful at getting subsequent semesters of students to use the products."

????It's inevitable that college stores' book sales revenue will decline. "Our stores have adapted, they are trying to adapt, and we like to think they have been successful," says Charles Schmidt, director of public relations for NACS. "But it is an undeniable fact that the nature of the college bookstore will change."

????As a part of that change, bookstores will be forced to diversify their businesses. Schmidt cites the University of California San Diego Bookstore as a promising example. It stocks textbooks and collegiate gear, runs a green grocer, offers a convenient store, and even sells and repairs computers.

????Ironically, they currently have every model of the iPad in stock.