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Technology Stocks : Audio and Radio on the Internet- NAVR -- Ignore unavailable to you. Want to Upgrade?

To: Kelvin Taylor who wrote (2671)	12/20/1998 6:39:00 PM
From: Scott Kleinhans	Read Replies (3) \| Respond to of 27722

Here's an interesting post from the "Wild Wild West" i.e. Yahoo. post.messages.yahoo.com@m2.yahoo.com Traffic. Currently, NetRadio generates about 20 million page views per month, or close to 1 million visits per day. Almost 3 million audio sessions per month are being generated, with an average listening time just under 30 minutes. I/PRO. A division of Nielsen Research, estimates that 73% of all first time visitors to NetRadio make return visits. Furthermore, NetRadio's traffic has increased at a rate of 8% per week since mid-1997 and the first half of 1998. These traffic statistics have been generated without significant payments to other content providers or on-line service companies. However, NetRadio is linked to 15,000 other websites around the world. In comparison, other major companies (primarily CDnow and N2K) that market and sell music over the Internet are generating higher traffic statistics (150,000+ page visits per day), but have also paid substantial dollars to place advertising and set up links with on-line service and content providers. NetRadio recently commenced a major strategic initiative that should significantly increase traffic by launching Net Media Player, a uniquely designed radio, which will appear exclusively on the Window 98 desktops of al new Packard Bell and NEC Ready computers. Net Media Player will feature 35 NetRadio channels. Assuming that Navarre completes a financing for NetRadio (discussed later in this section), we would expect that NetRadio would utilize much of the proceeds to improve and increase its marketing efforts.Vision and Strategy. NetRadio's strategy focuses on integrating content and commerce into a package it has named "content-enabled commerce". NetRadio is attempting to develop a content-driven platform that effectively generates a large audience of repeat listeners which serves as a marketing platform for a wide variety of commercial and revenue opportunities. In comparison, most on-line music retailers are focusing on sell-through of product by accessing traffic through aggregators or other content providers. By integrating content and commerce, NetRadio effectively differentiates itself from other on-line music retailers several different ways: Reduced cost of customer acquisition. NetRadio utilizes proprietary content to attract users rather than paying substantial dollars to aggregators or content providers to attract users. To date, NetRadio has spent virtually no marketing dollars to generate traffic. NetRadio's content has also proven highly effective at generating repeat visits. In comparison, NetRadio estimates that on-line music retailers N2K and CDnow have paid over $100 million to establish alliances with other Internet entities aimed at generating traffic. Significantly lower break-even point. NetRadio's operating costs are significantly lower than N2K's and CDnow's, due largely to its strategy of utilizing proprietary content rather than paying substantial amounts of money to aggregators to generate traffic. Consequently, NetRadio believes it can achieve profitability at a revenue run-rate well below $100 million whereas the business model of competitors requires hundreds of millions of revenue to achieve profitability.