Word: cds
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...than minefield for Time Warner in the past few years. "We can change the way people interact with music, change the distribution medium," says Jonathan Sacks, the senior vice president who supervises the main AOL service. Contemplate a music company that no longer has to bother manufacturing or shipping CDs, or sharing revenue with retailers--one that distributes its music directly from its hard drive to yours...
...names go, Amazon is a perfect choice. (Not least because its ticker symbol, AMZN, is a license-plate version of how the stock has performed.) The wild Amazon River, with its limitless branches, remains an ideal metaphor for a company that now sells everything from power tools to CDs, and is eagerly looking for new areas of expansion. It's possible to argue that Bezos didn't master much more than an evolution of commerce, replacing old-fashioned stores with a centralized sales and shipping center. But even that one change, he notes, grabbing a favorite word, is "huge...
...possible to go shopping and search not only Amazon but also the collections of two dozen other booksellers to find the best deal. And in coming years--heck, at Net speed, in coming months--it will be possible to find the cheapest price on just about anything: wines, CDs, perhaps even body parts...
...rock retailing, that it would change the way we live--stands as one of the more prescient assumptions ever made by a businessperson. "We're trying to build something lasting," Bezos says, looking at this 850,000-sq.-ft. monument to free trade. The warehouse is stocked with books, CDs, TVs, stereos, video games, software, toys. And yet only 10% of the area is being used. The rest is stretch space, here for the ongoing e-commerce revolution...
Economists get dizzy thinking about this. It is all so scalable. Add a few servers, a dozen more Web pages, a couple more customer-service reps, run your traffic up another digit, expand into new product lines and sell a hundred thousand more books or CDs or power tools. This kind of growth--Internet gurus like David Wetherell, enthralled by the mathematics of community, call it viral growth--defies conventional valuation and makes the usual measure of retailing--same-store sales, sales per square foot--seem like roman numerals or the abacus, relics of another...