JR,
<<While I think that TSIG is a good turnaround company, IMO, I don't think they are ready to surpass KTEL or CDNOW or CDWI!!>>
The paragraph below is from CDNOW's 3rd Quarter summary. I've heard they are up to 1.2 million to 1.3 million total customers currently, but I couldn't find a source showing that.
"CDnow has grown rapidly since its inception in 1994. Of the 738,000 customers who have made purchases since inception through September 30, 1998, 442,000 made their initial purchases during
the nine month period ended September 30, 1998. Average daily visits to the CDnow store have grown from approximately 12,000 in January 1996 to approximately 215,000 in September 1998."
Now, if you read TSIG's latest press release, you will see that the deal they just made should give them many new customers (my guess is at least 1 million). Because the customers will have a discount musicard good for 20 CDs, gaining repeat customers will be easy. Did you know that TSIG will sell CDs for $10.99 to those that hold a musiccard? This is much lower than other online CD retailers. Also, TSIG will gain their customers without expensive commercials on MTV like CDNOW uses. The Babe Ruth League is actually paying TSIG (up front) to let them sell their discount musiccards as a fund-raiser.
In my opinion, TSIG will be very competitive with and may surpass CDNW in 1999. |
