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 CDNow (CDNW) (Page 3)
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| Author | Topic: CDNow (CDNW) |
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KeithG |
posted 03-31-2000 01:31 PM
 
Some more Good News/Bad News? The executive quoted at the end is lauding their "sticky content" but they need to get people to make purchases. This is from ecommercetimes.com: Cash-strapped CDNow rose 5/16 to 3 13/16 Thursday after the music e-tailer said its site had a record 5.7 million unique visitors in February, up 23.2 percent from January. Unique customers totaled 3.5 million at month's end, up from 3.2 million at the end of January. CDNow was the fifth largest shopping site in February, according to statistics firm Media Metrix, with an 8.1 percent reach among all Web users. It was also the only music site on the research firm's top 10 list. CDNow pointed out that its rising numbers came as most e-tailers saw a seasonal drop in traffic. Amazon.com saw 20.1 percent fewer visitors in February from a month earlier, and Barnes and Noble's Web site had 7.4 percent less traffic, showing "CDNow's music-destination model has experienced less exposure to retail seasonality than pure Internet retailers," the company said. CDNow customers also stayed on the site longer, the company said. "By providing our customers with the kind of sticky content that encourages repeat visits, CDNow generates 63 percent of its retail revenue from repeat customers," said President and Chief Executive Officer Jason Olim. |
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mojo |
posted 03-30-2000 02:55 PM
I'm puzzled by something. As others have pointed out on this board, CDnow recently passed Amazon in site traffic, at least for one month. And yet 2Q00 revenues are expected to be about $25 million, down from $35 million in 2Q99. Most internet companies are growing fast, especially the unprofitable ones. And CDnow is apparently growing traffic to its site. But somehow revenues are falling. Things must be really bad here, and I guess that's why the stock price is in the dumps. Maybe CDnow should offer its shareholders a special deal -- "trade in two CDnow shares for one shiny new CD of your choice"  |
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MaxPower |
posted 03-30-2000 09:16 AM
Forget falling stock prices after huge IPOs. We are witnessing the first really high-profile collapse from the etailing industry, and it won't be long before we see that "going-out-of-business" sing in the window of CDNow's website. A number of reasons this is significant include just how long CDNow has been around, their position as a major competitor to Amazon, their inability to expand or invest wisely, and the number of customers they have versus inability to make a profit. This is certainly the kind of collapse that could be a catalyst for collapses of "guessed" similar collapses throughout the industry. Bring on the consolidation! |
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InvestorGuide Daily Administrator |
posted 03-29-2000 07:29 PM
As discussed on this board: CDNow's independent public accountant Arthur Andersen said there is "substantial doubt" over how long CDNow can remain in business. (source: E-Commerce Times) |
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mojo |
posted 03-29-2000 04:06 PM
At their current burn rate, CDnow has about six months of cash left (including the cash from its deals with Sony and Time Warner). They're trying to cut operating expenses as much as they can, but I don't think it will be enough. If they don't find another source of cash or a buyer, they'll have no choice but to close up shop. |
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KeithG |
posted 03-29-2000 12:14 PM
Things keep getting worse for this one. Their independent accountant filled with the SEC stating that it had doubts about its ability to continue. They also posted earnings of -$0.17 eps vs. -0.09 last year. http://cnnfn.com/2000/03/29/bizbuzz/cdnow/ I guess passing Amazon was a bad thing...if you are cash-poor and losing money on every transaction, the extra traffic is not going to help. Still, I just can't imagine CDNow shutting it down. If they did, I think it would send some serious shockwaves through the market. |
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smario |
posted 03-21-2000 01:57 PM
I just read that CDNow has surpassed Amazon as the e-tailer on the Net with the largest number of people buying while at home, according to market research firm PC Data. I am wondering why this didn't get more press than it did. Is it even significant? It sounds like it is... |
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InvestorGuide Weekly Administrator |
posted 03-20-2000 12:01 PM
Online music retailer CDNow and music club Columbia House have terminated their merger plans. On the bright side, CDNow passed Amazon in online sales for February, but its stock price languishes around 6, nearly 75% off its 52-week high. (source: CNet) http://news.cnet.com/news/0-1005-200-1570436.html |
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InvestorGuide Daily Administrator |
posted 03-16-2000 06:16 PM
Investors may be losing interest in e-tail stocks as CDnow sinks on a failed merger, online grocer Peapod considers a sale on after the loss of its CEO and $120 million in funding, and shares of HomeGrocer barely hover above its IPO level. (source: Cnet) http://news.cnet.com/news/0-1007-201-1574648-0.html |
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newguy |
posted 03-16-2000 11:00 AM
CDNow.com saw a 28% increase in traffic and pulled in more than a million buyers in February, topping previous leader Amazon.com in February's ranking of top online retailers, according to PC Data Online. Amazon had held the top spot since PC Data began tracking Web buying patterns in June 1999. While Amazon had more February traffic than CDNow--13.3 million unique visitors vs. 8.3 million--more people made purchases at CDNow, the survey showed. They're still losing a lot of money, but the growth is impressive, and with the stock in the cellar it might be worth a second look... |
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Earnings Administrator |
posted 02-03-2000 06:44 PM
CDnow (CDNW): -$1.13 reported, -$0.93 expected, -$0.70 same q last year. |
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vivid |
posted 10-01-1999 12:46 PM
From Billboard: "Bypassing traditional retail and the company's affiliated labels, Warner Bros.' film division is releasing two soundtracks from the movie 'Three Kings' through exclusive deals with online merchants CDnow and MP3.com. 'There was not a tremendous amount of enthusiasm from our labels to put out a soundtrack from the film,' says Gary LeMel, president of Warner Bros. worldwide music and CEO of Warner Sunset Records. 'We thought this offered us an opportunity to put out the album and have a first.' Concurrent with the film's opening tomorrow, CDnow will offer a seven-song soundtrack for $11.99, and MP3.com will sell an enhanced CD for $13.99, which will include the songs plus two movie trailers and an interview with cast member Ice Cube. MP3.com will also get a download of 'The Gold,' an instrumental from the Carter Burwell score." I'd say this is pretty validating for the online music industry, especially in a time when normal releases of soundtracks usually do REAL well. (triple post) |
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JHirsch |
posted 09-29-1999 11:35 AM
CDNow and Columbia House have named Scott Flanders the CEO of their new venture. According to an E-commerce times article. "Flanders is expected to bring some savvy and experience to the mix. Macmillan House grew to be the world's largest computer and reference publisher with him at the helm, and invested in Internet operations under his direction. Flanders is also a certified CPA and lawyer who was a tax and business consultant at Coopers & Lybrand." jake |
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newguy |
posted 09-06-1999 01:43 PM
I just read that of the 120,000 CDNow affiliates at the end of last year, only about 100 were making more than $30 a month in commissions. No wonder CDNow is flailing. Think about all the money and effort that goes into creating and administering an affiliate program for 120,000 partners, and only having 100 of them generating any meaningful sales. |
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vivid |
posted 08-16-1999 12:32 PM
I don't think CDNow should be afraid at all. By merging with Coilumbia House, CDNow will be getting back in touch directly with consumers (something they didn't have by being online). Also, they will be able to take advantage of Columbia House's relationships with all of the labels. I think (though NOT SURE) that like BMG, Columbia House burns their own copies of CDs with the Columbia House label on them, so they could translate this easier than other companies to downloadable music. Maybe CDNow was worried, but I really feel that they potentially have set themselves up really well through Columbia House. I have to say, I'm a member of Columbia House right now, and once I can download signed bands of the net, I will probably go their first (I need to fulfill my agreement, and they will have all titles, rather than just from one label). |
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