CDNWD still not open. This is the first of many deals I told you guys would occur upon merger completion, in my opinion.
CDNOW AND FIRST USA ANNOUNCE LANDMARK MULTI-YEAR, MULTI-MILLION
Dollar Marketing and Advertising Agreement
First USA Becomes the Exclusive Credit Card Issuer on CDnow
FORT WASHINGTON, Pa., March 23 /PRNewswire/ -- CDnow (Nasdaq: CDNWD), the leading global music e-commerce company, announced a multi-year, multi-million dollar agreement with First USA, the world's largest Visa credit card issuer. The alliance makes First USA the exclusive credit card issuer on CDnow, giving First USA significant online advertising and marketing exposure throughout the store.
Under the agreement, First USA will promote its credit card products and services on CDnow (cdnow.com) through integrated placements and sponsorships, including banner ads, buttons, text links and special offers that take CDnow customers to a First USA marketing page where they can apply for credit cards. If the agreement runs its full term, CDnow could potentially generate in excess of $8 million in revenue.
"We are pleased to be working with First USA, a leading provider of credit card services both online and offline," said Jason Olim, President and CEO of CDnow. "Partnerships between financial institutions and Internet retailers are key to addressing consumer concerns regarding the security of shopping online and will extend the mass market's acceptance of the Internet as a sales channel."
"This partnership marks a significant extension of CDnow's business model, which is expected to include other long-term advertising and sponsorship relationships in the future," said Bob Saltzman, Vice President, Corporate Sales and Advertising of CDnow. "The relationship is indicative of the growing value of CDnow's brand to marketers and customers alike. This deal and others like it will significantly impact our gross margins and be instrumental in achieving future profitability."
"First USA is truly excited to be partnering with CDnow, a leading global music e-commerce company that provides music fans with convenience, selection, information and ease of purchase," said Kurt Campisano, Senior Vice President, Internet Marketing, First USA. "A partnership like this creates unique and exciting marketing opportunities while consumers are engaged in shopping and buying."
On March 17, 1999, CDnow, Inc. and N2K Inc. announced the completion of the planned merger between the two companies, creating the leading global music e-commerce company as measured by customer base, revenue, positioning with key partners and product offerings. The merger creates the Internet's leading online music entity, which would have had on a combined basis 1.6 million customers and $98.5 million in revenues at the end of 1998. In addition, the new company ranked as the 4th most visited e-commerce site for December 1998, according to Media Metrix, creating one of the most desirable online sites for advertisers such as First USA.
CDnow, Inc. (Nasdaq: CDNWD), the combination of N2K Inc. and CDnow, Inc., is a leading global music e-commerce company that is improving and strengthening the connection between music and consumers by building a better music store. CDnow (cdnow.com) offers approximately 500,000 music related items -- ten times the size of the average music store -- intelligent album recommendations, custom CDs, music samples, a vast library of reviews and features from top music writers and editorial content from Rolling Stone Network, MTV/VH1 and CMJ New Music Monthly. CDnow, Inc.'s network of strategic partners includes AOL, Yahoo!, Lycos/Tripod, Netscape, Excite, WebCrawler, GeoCities, MTV/VH1, Rolling Stone Network, and CBS Cable's TNN, CMT and country.com.
First USA (www.firstusa.com), a subsidiary of BANK ONE CORPORATION, is the world's largest Visa credit card issuer. First USA offers credit cards for consumers and businesses under the First USA, First Card and Bank One names and on behalf of over 1,500 marketing partners. BANK ONE CORPORATION (NYSE: ONE), with assets of more than $260 billion, is the nation's fourth-largest bank holding company.
This release contains statements relating to future results of the
Company (including certain projections and business trends) that are
"forward-looking statements" as defined in the Private Securities
Litigation Reform Act of 1995. Actual results may differ materially
from those projected as a result of certain risks and uncertainties,
including but not limited to, changes in political and economic
conditions, demand for and market acceptance of new and existing
products, as well as other risks and uncertainties detailed from time
to time in the filings of the Company with the Securities and Exchange
Commission.
SOURCE CDnow, Inc.
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