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To: Tom D who wrote (41406)	2/20/1999 1:10:00 PM
From: Lizzie Tudor	Respond to of 164684

TomD, I don't actually know what Dell's plans are since they will apparently be unveiled on Monday. I don't quite know what Amazon's general merchandise plans are either - Amazon has a "help us build our site" tab on their web page. I'm sure Dell won't sell books but Amazon is not priced to be a book and CD only retailer. I suspect their general merchandise product lines will compete eventually. My point is that Dell is someone who actually can compete with Amazon on a technology front whereas buybooks.com cannot. I view Amazon as a technology company and not as a bookseller, contrary to most here. BTW that link was just something someone dug up as a precursor to mondays presentation for Dell. (or whenever the presentation is) Michelle

To: Tom D who wrote (41406)	2/20/1999 3:09:00 PM
From: Glenn D. Rudolph	Respond to of 164684

10 commerce and communication. What will emerge will be two worlds: commerce-driven content (like product information and comparisons) and everything else. In this world, certain content will become highly valued for its ability to drive electronic commerce, for its ability to create revenue by providing context for the transactions that consumers are increasingly seeking to complete over the Internet. This type of content has its highest value where its relevance is highest, and that is indisputably at the point of sale: right before a consumer is looking to, say, buy software or a computer. CNET has already seen nice returns (4Q98 results beat the Street by $0.08) from its ownership of commerce-driven content. As Halsey Minor, CNET's CEO pointed out on the 4Q98 conference call, “this deal [with AOL] was pretty much of a no-brainer from our standpoint for a number of reasons.” 1999 is the year that CNET wants to really penetrate the consumer market (versus its focus in the past on early adopters and higher tech users) and there is no better place to reach mass consumers on the web than AOL. In a similar attempt to reach mass consumers, Columbia House and AOL entered into a major marketing relationship encompassing online and off-line advertising, promotion, co-marketing, direct mail and product bundling. This relationship is a great example of the hurdles even successful direct marketers are facing on the web. It is not enough to take a well-recognized off-line brand and put up an e-commerce enabled site (capitalizing on years of direct marketing and fulfillment expertise). In order to drive traffic, you need a web partner that has already aggregated consumers (AOL, YHOO, XCIT). After being inundated with Columbia House promotions over the last twenty years, we found some real perspective on how far the web has come when we noticed in the announcement of this deal, that AOL has more members than Columbia House. Sun Sheds Light on Merger A flurry of SEC filings over the past few weeks helped to illuminate the particulars of the AOL-NSCP-SUNW deal. First, Sun revealed the revenue guarantees to AOL on NSCP's business software over the first three years of the relationship - $312M, $330M and $333M -for a total of $975M. Additionally, Sun will pay AOL $275M in licensing and other fees (already announced), as well as usage fees for remote dial-up access services in the amount of $7M. In turn, AOL has agreed to purchase $500M of systems and services from Sun over three years. As to any dramatic plans regarding browsers, AOL's S-4 states plainly, “America Online intends to maintain its working relationship with Microsoft; America Online intends to continue to include Internet Explorer as the default browser on the AOL service. America Online's multi-year agreement with Microsoft provides that, under these circumstances, Microsoft will continue to include America Online software in the Windows operating system and promote the AOL services on the desktop.” We hope this finally puts to rest any debate on AOL's short term browser plans. Additionally, it reinforces AOL's initial strategy behind the merger; while many have highlighted the NSCP browser, AOL is most interested in building reach via the Netcenter portal assets. Netscape shareholders will vote on the merger on March 17 th . Yahoo (YHOO) Softbank's Share Shuffling Earlier this week, Softbank (YHOO's largest shareholder -28%) sold 3 million shares, . The sale was intended to raise cash for more new

To: Tom D who wrote (41406)	2/20/1999 3:13:00 PM
From: Glenn D. Rudolph	Respond to of 164684

16 DataBank I n t e r n e t U se r s A nd H o u s e h o l d s ( I D C ) 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 T o p 1 0 T r a d i t i o n a l M e d i a A d v e r t i s e rs U S H o u se h o l d s ( m m ) 1 0 0 .7 1 0 1 . 5 1 0 2 .7 1 0 3 . 8 1 0 4 .8 1 9 9 7 ( A d A g e ) $m m % w i t h P C s 4 2 % 4 5 % 4 7 % 4 9 % 5 2 % G e n e r a l M o t o r s 3 ,0 8 7 % U S H H O n l i n e 5 5 % 6 3 % 7 4 % 8 2 % 9 5 % P & G 2 ,7 4 3 T o t a l O n l i n e H o u se h o l d s ( m m ) 2 6 3 4 4 2 5 2 6 7 P h i l i p M o r r i s 2 , 1 3 7 W W W U s e r s ( m m ) 9 7 . 3 1 3 1 .6 1 7 0 2 2 7 .7 3 1 9 . 8 C h r ys l e r 1 ,5 3 2 F o r d 1 ,2 8 1 I n t e r n e t C o m m e r c e - R e t a ilin g C a t e g o r i e s ( F o r r e s t e r ) S ea r s 1 , 2 6 2 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 D i s n e y 1 ,2 4 9 P C H / W & S /W 1 , 6 1 6 2 ,2 3 4 2 ,9 0 1 3 ,7 6 6 P e p s i 1 ,2 4 5 T r a ve l 1 ,5 2 3 2 ,8 1 0 4 ,7 4 1 7 ,4 4 3 D i a g e o 1 , 2 0 6 E n t e r t a i n m e n t 5 9 1 1 , 1 4 3 1 ,9 2 1 2 ,6 7 8 M c D o n a l d ' s 1 , 0 4 1 B o ok s , M u s ic 2 8 8 5 0 4 7 6 1 1 , 0 8 4 G i ft s , F l ow e r s , G r e e ti n g s 2 6 4 4 1 3 5 9 1 8 0 2 T o p 1 0 W e b S it e s b y R e a c h A p p a re l & F o o t w a r e 1 5 7 2 4 5 3 6 1 5 1 4 M e d i a M e t r i x - D e c . D a t a % R ea c h F o o d & B e v er a g e 1 6 8 2 5 0 3 5 4 4 6 3 A O L W e b s i t e s * 5 4 .5 O th e r 22 1 3 2 5 4 6 0 6 3 7 M i c r os oft S i t e s* 4 8 .4 T ot a l 4 , 8 2 8 7 ,9 2 4 1 2 ,0 9 0 1 7 ,3 8 7 Y a h o o S i t e s * 4 8 .2 L yc o s* 4 6 .5 I n t e r n e t A d v e r t i s in g ( J u p i t e 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 G e o C i t i e s * 3 3 .4 T o t a l M e d ia A d v e r t i s i n g ( $ m m ) 1 5 6 , 0 8 3 1 6 5 ,9 9 4 1 6 7 ,3 8 4 1 7 5 ,2 7 0 1 8 7 ,0 0 0 N e t s c a p e* 3 0 .9 I n t e r n e t A d ve r t i s i n g ( $ m m ) 1 ,8 7 3 2 , 9 8 7 4 ,3 5 2 5 , 7 8 4 7 ,6 7 2 E x c i t e N e t w o r k , T h e * 2 9 .2 % o f T r a d it i o n a l M e d ia S p e n d i n g 1 .2 0 % 1 . 8 0 % 2 .6 0 % 3 . 3 0 % 4 .1 0 % W a lt D i s n e y C o m p a n y O n l i n e , T h e * 2 3 .9 I n t e r n e t D i r e c t M a r k e ti n g ( $ m m ) 1 9 0 3 5 3 6 3 2 9 1 7 1 , 3 3 5 I n fo s eek * 2 2 .1 B L U E M O U N T A I N A RT S. C OM 2 1 .7 T r a d i t i o n a l A d S p e n d i n g b y M e d ia ( J u p it e r ) 1 9 9 6 2 0 0 0 2 0 0 2 T o p W e b N e t w o r k s b y R e a c h N e w s p a p er s ( $ m m ) 3 8 ,2 0 0 4 7 ,4 0 0 5 0 ,1 0 0 M e d i a M e t r i x - D e c . D a t a % R ea c h R a d i o ( $ m m ) 1 2 ,3 0 0 1 5 ,9 0 0 1 7 ,8 0 0 2 4 /7 M e d i a * * 5 0 .0 T V ( $ m m ) 3 6 , 0 0 0 4 2 , 9 0 0 4 6 , 9 0 0 D o u bl e C l i c k N e t w o r k , T h e ** 4 5 .8 C a b l e ( $ m m ) 6 ,4 0 0 9 , 9 0 0 1 2 , 2 0 0 E x c i t e A d v e r t i s i n g N e t w o r k , T h e * * 3 2 .8 M a g a z i n e ( $ m m ) 9 , 0 0 0 1 0 , 9 0 0 1 1 , 9 0 0 L i n k E x c h a n g e N e t w o r k * * 5 3 .6 I n t e r n e t ( $ m m ) 3 0 0 4 , 4 0 0 7 ,7 0 0 M i c r o s o ft S i t e s / L E N e t w o r k ** 6 7 .9 M S N / L E N e t w or k * * 6 5 .7 B r o a d b a n d C o n n e c t i o n s - U S H o u se h o l d s ( F o r r e s t e r , m m ' s ) R e a l M e d i a * * 1 9 .1 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 X o om N e t w or k , T h e * * 1 8 .9 C a b l e M o d e m s 0 .7 0 2 .0 0 4 .3 0 8 .2 0 1 3 . 6 0 A D S L 0 .0 0 0 .2 0 0 .4 0 1 .0 0 2 .2 0 T o p W e b S it e s b y T i m e S p e n t T o t a l B r o a d ba n d : 0 .7 0 2 .2 0 4 .7 0 9 .2 0 1 5 . 8 0 M e d ia M e t r i x - D e c . D a t a ( m i n s / m o n th ) B r o a d ba n d a s % o f t o t a l o n l i n e 2% 6% 1 1 % 1 8 % 2 6 % G A M E S V I LLE * 2 4 6 .7 E B A Y. C O M 1 2 6 .7 M a j o r B r o a d b a n d S e r v i c e P r o v i d e r s ( S G C o w e n e t s . h o m e s b a s i s , m m ' s ) M O N E Y C E N T R A L * 6 6 . 0 H o m e s N e t w o r k S e r v i c e S u b s c r i b e r s Y A H O O . C O M 6 0 . 0 C a b le P r o v i d e r s P a s s e d D ep l o ye d A v a ila b l e ( a c t u a l #s ) H O T M A I L . C O M 5 6 . 7 @ H o m e 6 0 .0 1 3 .2 1 3 .2 3 3 1 , 0 0 0 N E T A D D R E S S .C O M 4 3 . 9 R o a d R u n n e r 2 7 . 3 1 4 . 5 7 . 5 1 8 0 ,0 0 0 U P R O A R .C O M 4 0 . 2 O t h e r 2 0 .0 5 . 0 2 . 5 5 7 ,0 0 0 S C H W A B . C O M 3 7 . 2 T o t a l 1 0 7 . 3 3 2 . 7 2 3 . 2 5 6 8 ,0 0 0 E T R A D E .C O M 3 7 . 1 R O O T S W E B . C O M 3 6 . 0 A D S L P r o v i d e r s A m e r i t e c h 1 1 . 1 1 .0 0 . 6 5 ,0 0 0 T o p 1 0 M e d ia C o m p a n i e s b y M k t C a p B e l l A t l a n t i c 2 1 . 3 2 .0 1 . 3 5 ,0 0 0 ( $B i l l i o n s ) B e l l S o u t h 1 5 . 6 1 . 8 0 . 9 5 , 0 0 0 A m e r ic a O n lin e $8 4 G T E 1 1 . 3 5 .0 2 . 5 5 ,0 0 0 T i m e W a r n e r $7 0 S B C 1 8 . 1 4 .4 2 . 6 5 ,0 0 0 D i sn e y $7 1 U S W e s t 8 .0 5 . 4 2 .5 1 0 , 0 0 0 T e l e - C o m m u n i c a ti o n s I n c . $3 6 T o t a l 8 5 .4 1 9 .6 1 0 .4 3 5 ,0 0 0 Y a h o o ! $3 2 S on y $3 1 T o p 1 0 R e t a i l e r s b y M k t C a p ($ b i l l io n s ) V ia c o m $3 0 W al - M ar t $1 8 9 C BS $2 6 H om e D e p o t $8 9 S ea g r a m ' s $1 9 W a l g reen $3 1 C ox $1 8 D a yt o n H u d s o n $2 7 S a fe w a y $2 6 C os t c o $1 8 K ro e g e r $1 6 A m a z on $1 5 S ea r s , R o e b u c k $1 5 A lb e r s t o n ' s $1 3