Rakuten Kobo’s push for smarter, more personal reading

As AI and digital transformation continue to reshape our lives, the simple pleasure of reading a good book remains a fundamental human activity. Yet even this age-old practice is undergoing changes. As Michael Tamblyn, CEO of Rakuten Kobo, explained during a headlining keynote at Rakuten AI Optimism 2025 in Yokohama, Japan, Kobo isn’t just selling books; the company is adapting to technological shifts to empower the future of reading.  

Supported by Rakuten Group’s robust global ecosystem and inspired by their goal to make the reading lives of users better, Kobo is leveraging both cutting edge tech and the deep expertise of their global team to create smarter, more personal reading experiences for millions of booklovers. 

From challenge to opportunity

When Kobo emerged in 2009, the publishing world stood at a crossroads. The advent of digital books presented both a challenge to traditional publishers and an unprecedented opportunity. Tamblyn highlighted Kobo’s foundational belief that books would undergo the same digital transformation seen in music and video, and retailers would not only survive but thrive within this revolution. Their core tenets were clear: enable reading on any device, foster a global platform tailored to local preferences and, most importantly, always put the reader first. 

Fifteen years later, Kobo stands as the world’s second-largest digital reading platform, a testament to its foresight and unwavering commitment. With over 33,000 publishers and a catalog exceeding 8 million titles, Kobo delivers eBooks to an astonishing 195 countries. This global footprint underscores a shared focus on empowering retailers and fostering partnerships rather than competing with them. 

Global reach, local heart

Kobo’s journey exemplifies the power of thinking globally while acting locally. Launched in Toronto, Canada, Kobo recognized the importance of international expansion early. This led to the development of a platform supporting multiple languages, currencies and payment methods. Today, Kobo’s sales are almost evenly split across Asia, the Americas and Europe, showcasing its truly global appeal. 

“We’re not just selling devices. We’re trying to sell mindful reading experiences and an escape from the distractions of every day.” 

Michael Tamblyn, CEO, Rakuten Kobo

This global perspective also means embracing the diverse ways in which different cultures engage with books. In Japan, for instance, smartphones are the primary device for digital reading, particularly for manga, a ¥665 billion market growing at 5.8% annually. Kobo has meticulously tailored its experience to meet this demand while also catering to readers of literary fiction, non-fiction and translated works. 

During his session, Tamblyn shed light on the unique reasons for Japan’s smartphone-centric reading habits, tracing back to early eReader experiences. However, he emphasized that for many, modern eReaders, with innovations like waterproofing, faster screens, stylus support and color displays, offer a refuge from the constant distractions of smartphones. As Tamblyn stated, “We’re not just selling devices. We’re trying to sell mindful reading experiences and an escape from the distractions of every day.” 

AI-nization of reading

The conversation inevitably turned to AI, a topic of critical importance and nuance within the book industry. Kobo’s approach to AI is guided by clear principles: enhancing the reading experience, respecting intellectual property and enriching a reader’s appreciation for the books they read. 

While acknowledging the challenges AI presents, such as the potential for the production of low-value content and concerns around piracy, Kobo is proactively developing techniques to identify and remove AI-generated content and protect the livelihoods of creators. This commitment to safeguarding authors and publishers underscores Rakuten’s broader emphasis on responsible innovation. 

Crucially, Kobo views AI as a powerful tool to augment, not replace, human creativity and expertise. For authors, AI can serve as an invaluable assistant for research and organization, freeing them to focus on the unique stories only they can tell. For booksellers, AI helps refine recommendations through better categorization and curated collections tailored to individual readers.  

As one example, Kobo is looking at the potential of AI enhanced search capabilities for book recommendations tailored to specific interests or situations. This reflects how AI can become a practical tool to personalize, simplify and even enhance the reading experience. 

Connecting readers to stories in new ways

Kobo’s innovative spirit extends to its business models. The introduction of Kobo Plus, an all-you-can-read subscription service now available in over 20 countries, exemplifies their willingness to disrupt themselves to meet evolving customer needs. This bold move has shown fascinating results. Subscribers read twice as much and finish books six times more often, encouraging them to explore new authors and genres. This initiative not only provides readers with immense value but also offers publishers and authors new avenues for discoverability and growth, giving “second lives to hundreds of thousands of books.” 

At Rakuten AI Optimism 2025, Michael Tamblyn highlighted how Rakuten Kobo stands as a steadfast partner for readers, authors and publishers. By amplifying the power of stories and the joy of discovery and ensuring every book finds its reader, Kobo embodies Rakuten’s forward-looking vision. Leveraging advanced technologies like AI to foster deeper human connections and enhance the reading experience, Kobo is shaping the next chapter of digital reading.