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Technology Stocks : Aahh...iNEXTV (AXC) The NEXT Thing! -- Ignore unavailable to you. Want to Upgrade?

To: bootsup1 who wrote (3647)	5/7/2001 11:30:24 AM
From: Alan Cassaro	Respond to of 4169

>>> No more freebees.<<< I don't mind so much that the "free" ecommerce webspace companies are starting to charge for their services, I was just surprised that it's all happening at once, at least from the ones I've been tracking or using for the past couple of years.It's a sign of the times. Actually, a friend of mine will be hosting a site for various musicians, but he won't be up and running until about August. Since it's affiliated with "FolkNet", an Ohio music Group, he said that he'll probably be charging musicians with products about ten dollars a month, and maybe another ten dollars for credit card processing. He said the yearly costs for the web hosting will be around 4000 dollars, and he has so much webspace available, that "renting" space and credit card processing to others will help offset the expenses of he and his partners until it starts paying for itself. My friend is a pretty good recording engineer, and he plans to create encrypted methods of making the music downloadable, for a fee to the consumer. For the indie artist, it seems like the right way to go. It won't involve the "partnering" with folks like "MyMP3.com" who charge about fifty percent of sales. That's the standard markup that brick and mortar businesses use - from each step of the process- from manufacturer, shipping costs by truck, distributer to Retail outlet costs. The idea that will benefit the online CD buying consumer is to try to eliminate the traditional markup costs, and pass those savings on. I haven't seen too much of that online, there doesn't seem to be any more of a discount than you get from the department stores. In fact, I think that online profits are probably much bigger than traditional retail stores profits. You have a webpage, and you have a storehouse of product to ship. Online Companies can afford to charge less, because they don't have all the other traditional expenses to contend with. So, if Ampex can offer advertising tech at a fifty percent reduced rate, that will be good for everyone concerned with getting their message and product out to the public. al