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Non-Tech : E4L, Inc. (NYSE: ETV)
ETV 13.73-1.4%Nov 20 4:00 PM EST
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To: Terry Jackson who wrote (704)12/2/1998 6:52:00 PM
From: shane hartman  Read Replies (1) of 1080
 
>More competition for NM

>WavePhore offers Internet TV shopping service

Not really. I think you need a special set top box to get the WAVO stuff, so its hardly as accessible as the internet proper. Also, throwing up a shopping mall is easy. Marketing it takes bucks. Why do you think COOL, AMZN, EGGS, etc. are spending on TV ads? NM already spends on TV adds. The incremental spend to draw visits to their site is just the cost of making commercials.

Also, I think that NM's market is the same kind of people that shop at Costco. They are more likely to pay for a membership. You can't compete on product margins with a company that makes money on membership fees rather than product. That's why costco works. The CEO sounded like he had a very good handle on marketing and promotion and that will be required to succeed in this market.

I just signed up for a membership and bought a few things to get my money back. Every NM stockholder should sign up for a membership, sign your friends and family up, sign your dog up! I think the stock is a good value here. But that's my opinion, and that's why I bought it again. I understand how they will make money and I think its a pretty good story. You should do your own dd if you want to buy the stock.

Watch the membership rates as they are announced, for they are the key to the bottom line. 25K members is a good start for a couple of days.
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