HEARD ON THE BEAT
Booked Up
By KAREN KAPLAN
Monday, January 5, 1998
To the list of things that have been redefined by the explosive growth
of cyberspace, America Online has added the word "exclusive."
Last month, the world's biggest online service announced an
"exclusive" deal with BarnesandNoble.com, giving the online subsidiary of
the Barnes & Noble book superstore chain "extensive placement and
visibility" across AOL's proprietary service in exchange for $40 million over
four years.
In addition to AOL's Marketplace section--which has featured Barnesand
Noble.com since March--the bookseller gets special placement on such AOL
sites as Entertainment Asylum and Digital City.
That news did not sit well with Amazon.com, the online bookseller that
touts itself as "Earth's biggest bookstore." In July, the Seattle company
struck its own three-year "exclusive bookseller agreement" with Dulles,
Va.-based AOL, giving it sole placement on AOL's Web site and on its
NetFind search engine.
Two days after AOL announced the Barnes & Noble deal, Amazon.com
issued a news release explaining that the deal with BarnesandNoble.com
"has no effect on Amazon.com's existing position as an exclusive bookseller
on America Online." The release even quoted AOL Networks Chief
Executive Bob Pittman as saying that "Amazon.com is and continues to be
one of AOL's strongest partners."
How can two retailers both be "exclusive"? The sleight of hand evidently
comes from AOL's relatively new strategy of seeking a wider audience by
maintaining a Web site for all Internet users in addition to its proprietary
members-only service. The Web site, at aol.com, carries
different, and sparser, material than its $19.95-a-month subscription service.
No word yet from New York-based Barnes & Noble on its interpretation
of the Amazon.com deal.
latimes.com; |
