Here is why AMZN will lose big time:
GUTERSLOH, Germany -- Ramping up to compete with Amazon.com Inc.
in Europe, Bertelsmann AG's online bookstore announced a number of
marketing and advertising deals with leading European Internet players.
Books Online said it had signed a deal to become
the exclusive bookseller for the European
operations of America Online Inc. and
CompuServe Inc. of the U.S., two of Europe's leading Internet-service
providers. BOL also signed an agreement to be the exclusive bookseller for
Lycos Inc.'s Lycos Europe, a popular portal site.
The deals are part of Books Online's attempt to go head-to-head with leading
online bookseller Amazon.com, which launched divisions in Germany and the
United Kingdom last month. Books Online, which is starting late in the
fast-growing Internet-bookselling business, is due for launch in the coming
months and will make its debut with titles in five languages. BOL's marketing
deals were widely expected, as Bertelsmann is a partner in AOL Europe,
Compuserve Europe and Lycos Europe.
The link-up with AOL and Compuserve will include banner advertising, direct
merchandising and prominent featuring of the BOL bookstore throughout
both services. BOL estimates it will bring in more than $13 million to AOL
and Compuserve Europe over the next two years.
Lycos, meanwhile, will provide access to BOL from its sites in nine European
countries, and BOL will supply Lycos with book-related content. BOL expects
the deal to generate some $10 million for Lycos over the next three years. |
