>>> Amazon.com expands Internet site to sell music<<<
Glenn - it is interesting that Amazon is being viewed as a sure-thing hit in music "E-tailing" as well as books...I think it would be more prudent to view their venture as a "proof is in the pudding" undertaking at this point. A few observations , if I may....
First , my guess is that music purchases are much more an impulse-driven buy than a book. You hear it , you want it , you go to the store and get it. I'm not so sure the average buyer wants to wait a week (if in stock) or longer (if not in stock) to get the CD.
Second , if just buying one CD , the shipping will more than eat up any savings they could offer.
Third , many stoned-out music buyers (14 year-olds , dropout types , etc.) don't have credit cards , and so how do they buy from the net?
Fourth , and I know this sounds redundant, but Barnes & Noble is already very big in music , and I can't imagine them ignoring this category too. The stores in my area have a very wide selection , and cover all tastes in music. They can ditto that on the net in no time.
I view Amazon's foray into music and other products as an attempt to keep the growth story going , as clearly that is what is pumping the stock up, sad to say. The "investors" in AMZN so far have been willing to swallow the story , and Amazon realizes the book revenue will peak , so it is grasping for sales in another high-volume sector, CDs.
IMHO , this will be chapter 2 in the "volume without profit" saga that is the ludicrous lure for all that spec money that is in the stock. I just can't wait 'til we get to Chapter 11.
Best of luck to all . |
