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Technology Stocks : WDC/Sandisk Corporation
WDC 181.54+1.1%Dec 26 9:30 AM EST
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To: Starlight who wrote (20301)5/21/2001 7:14:27 PM
From: Art Bechhoefer  Read Replies (1) of 60323
 
The link between Vivendi and MP3 is further evidence of the music publishers buying online distribution mechanisms. It is less costly to sell music selections by allowing the user to download a file than the alternative of selling CD's through retail outlets. The cost saving is in the material, the packaging, and the distribution to wholesalers and retailers. The cost advantages are partially offset by being able to sell only the selections the user wants, not the rest of the stuff that a buyer is often required to buy on the CD. But all in all, it is a new and potentially profitable way of distributing music--popular selections and classical as well. Now to make it work easy, one could use the same single-click method that Amazon.com uses, but the problem here is that the price for a single selection would be so low that there would be a lot of credit card entries for small amounts. A better way would seem to be the method contemplated by the secure digital memory card, where the buyer is immediately identified, allowing the seller to bill monthly or to deduct from a credit line, or simply to offer a monthly subscription fee that would allow downloading a certain number of selections periodically.

Art
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