Borders has not chosen to be in the international brand space on the Internet, which could turn out be a fatal mistake for them."įor now, Amazon has the lead in the online bookselling world, with $147.8 million in sales in 1997, and exclusive partnerships galore, including marketing deals with Yahoo, Netscape, Excite, AOL.com, and iVillage. "That's why Amazon is kicking Borders' butt right now. "Snatching up the largest bookseller in Germany and the largest online bookseller in England is not such a bad idea," said Keenan. "Barnes & Noble is finally starting to advertise, and if doesn't concentrate on capturing the book bubble market share, they might be crippling themselves by being number two in a bunch of categories." Borders Books & Music will launch its site later this year, along with mammoth German book publisher Bertelsmann AG, whose site will be called BooksOnline.īut the other two purchases in the Amazonian shopping spree signaled that the company is scrambling for more of the global book market share: Bookpages claims to offer all 1.2 million UK books in print, and Telebook offers 400,000 German-language titles. "There is concern about Amazon taking its eyes off the target," said Keenan. Indeed, some analysts say that there is a risk in branching out. However, the overwhelming majority of music consumers have demonstrated that they want to buy music in a music store."
"The traditional retail world has shown that a small percentage of music can be sold through bookstores. "With Amazon's long-anticipated announcement of its music offering, a latecomer has joined the well-established online music retail space," said CDnow president and CEO Jason Olim in an email.
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Showbiz, TV Guide, and WebTV, that have helped fuel our growth." IMDb is one of several partnerships, such as Yahoo, Mr. "No one site has a lock on that audience.
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"IMDb has been a splendid partner, and while we will be sorry to lose them to a competitor, the good news is that the Web is rich territory in sites for movie lovers," said Harry Bernstein, vice president of business development at, via email. IMDb currently links its visitors to when they find a flick they want to buy, based on a deal signed last September and set to run through the summer. Interestingly, one of the few competitors in the video space is, which had negotiated its own partnership with the database site. Hence the purchase of the Internet Movie Database. "They need to buy the expertise in this stage of the game." But she cautioned that Amazon is no film or audio buff, at least not yet. "With folks like Borders ready to hit the Net, I think that Amazon's ready to make sure they've got a content war chest," said Bane. Most analysts think that Amazon can make the transition and even rule the new markets it's aiming for.
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The company, which is already selling CDs in a tiny patch of its Web site, is gearing up for a full-fledged music selling area and is soliciting suggestions on its site for what its customers want in "your dream music store."
The reigning monarch of online book sales is also sizing up the music sales territory.
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