Barnes & Noble announced Tuesday it is paying America Online $40 million to be the exclusive seller of books on the nation’s largest on-line service.
For the next four years, Barnes & Noble Inc. will be able to sell books on AOL’s network and display ads to the service’s 10 million subscribers.
“Effectively it gives us great positioning, locks out the competition, and gives us the next four years” of exclusive advertising, Barnes & Noble vice chairman Steve Riggio said.
Seattle-based Amazon.com and other online book sellers will not be able to advertise on AOL, although subscribers could access their sites through the service’s World Wide Web connection.
The deal is the latest exclusive arrangement for Dulles, Va.-based America Online Inc., which has staked its future on revenues from advertisers. In exchange for helping to promote their products, AOL is receiving more than $225 million from companies including CUC International Inc., a buying club, and Tel-Save Holdings Inc., a long-distance phone service.