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To: Mike Buckley who wrote (286)2/21/1999 9:33:00 PM
From: Mark[ox5]  Respond to of 54805
 
I am not big on AMZN myself, but i read somewhere about a week ago a very interesting point. These internet companies that everyone laughs at and says "how could you buy them, what do they sell? Low margin crap".... well you have to think of them as media companies.

Why do I say that? Well the article says.. think of them as newspaper or magazines.... it takes a lot more than say $1.00 an issue (for something like Time to get as a subscriber) to print, report, pay reporters, overhead, travel costs, etc etc etc. But ever notice what % of a magazine is just ADVERTISING? These media companies.. newspaper, magazines, lose money in the process of basically giving away their product at below cost, but MAKE money in the advertising venue. People have yet to see that in the internet space.

The internet is even better than a magazine, because advertisers who advertise in Time are looking for "age 35-55, male/female. income $50,000+, college educated" or in Cosmopolitan "age 16-32, female, income nil to $40,000" etc

BUT.. on Yahoo if you type searchword "garden" you have an instant 100% any demographic advertisement for www.garden.com pop up. Same for any other keyword...

AMZN is somewhat similar...they keep on storage all your purchases, what you like, what you have bought, and reserve the right to sell that information in the future... also I wouldnt be surprised to see a lot more advertising in the future on their site!

Mark