Since the time Amazon reshaped book selling, the legendary Book of the Month Club that made its existence in 1926, got a major setback and was in doldrums due to several changes in ownerships, until John Lippman, a young 43-year old entrepreneur and an executive at music-rights firm Evergreen Copyrights, bought majority stake in Bookspan, the entity having ownership of Book of the Month Club. Lippman acquired this with an idea to revive and grow the Club’s shrunk membership after entering into of Amazon in the book selling scenario. The online books got more popularity that shifted readers’ interest from manual reading.
Why Lippmann took challenge of buying a dying company
Why John Lippman was interested in a company that was dying why he bought parent company of the Book of the Month Club? He sold previous company’s rights to a division of Bertelsmann. An investor Jahm Najafi, the owner of business rights, made this offer to Lippmann, who was doing some other entrepreneurial and deal-oriented work. He saw matching of timings. Amazon’s dominance was a challenge, and Lippmann loved to accept challenging projects. Lippmann observed the opportunity of remake of Book of the Month Club. Lippmann knew that accepting this challenge would be a profitable venture, and finalized deal with Najafi.
Why Lippmann focused on Book of the Month
Out of different clubs of Bookspan, John Lippman picked and focused on Book of the Month Club because it was different. He decided to shut it and shift its members to other Bookspan clubs before its makeover. This makeover was going to make a new look of the great legacy, and this was a great opportunity to match the brand withy other brands of new era. He needed to work on a mission that was really challenging. Lippmann wanted entirely different business model that was possible through relaunch. Lippmann took a risk, but this risk gave him success in a short span of two years.