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![]() CDNow (CDNW) (Page 4)
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| Author | Topic: CDNow (CDNW) |
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newinvestor |
techbull, I think CDNOW should be afraid, be very afraid of online music downloads. They are beginning to offer some music for download with a few indie labels, but they don't seem to be moving fast enough. I also highly doubt that the merger with columbia house will speed up this process at all. |
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techbull |
No major surprises in the report, the numbers were about what analysts were expecting. I expect CDnow to continue to grow fairly quickly (this quarter's revenues were up 200% from the same quarter last year) but margins will always be under pressure due to rival Amazon. The two big things that are clouding the picture are the Columbia House merger and the coming of digital downloading of music. |
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vivid |
Earning report: http://www.news.com/News/Item/Textonly/0,25,40189,00.html?pfv |
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vivid |
Yesterday, CDnow announced that it is merging with music and video club Columbia House, owned by Sony Corp. and Time Warner. The as-yet-unnamed new entity will be 37%-owned by Sony, 37%-owned by Time Warner, and 26%-owned by CDnow. Although it's not so much a merger as it is Sony and Time Warner planning to buy CDNow and merging it will Columbia House into a new company, with seperate businesses, that will challenge Amazon's net dominance. This is all somewhat confusing, but i'm sure everything will become clear in the coming weeks. |
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mrcool |
Not sure about the answers to vivid's questions, so instead I'll add another question. I just read on Wired that CDnow is considering expanding into book selling. Is this smart? Are they just jealous that Amazon is stealing their market away? Will they rename their site to CDorbooknow? |
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vivid |
From the "who woulda thunk it?" files: Deutsche Telekom is planning to take a sizeable stake in U.S. CDnow, according to the German magazine Focus. The magazine wrote that Deutsche Telekom wants a 25% stake and will spend at least $95.5 million to get it. First, why does DT want to get into the Online Retail Music market? Second, why did it choose CDNow? Third, why does it seem rather desperate to get the 25% stake? |
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newguy |
Found this on the Marketing Computers site: The future starts today for CDnow. The online music store launches its grand reopening after completing the fusion of its original site with N2K's Music Boulevard site, which CDnow acquired earlier this year. The revamped site offers more than 500,000 music-related products and 500,000 sound samples in both MPEG and stereo RealAudio formats, plus music reviews from Rolling Stone, CMJ Music Monthly, CMJ New Music Report and MTV/VH1. CDnow is driving traffic to its new site with a grand opening sale, featuring discounts of up to 30 percent from now through June 14 and free shipping until June 1. Meanwhile, CDnow is preparing for the future of digital distribution. Parker says he has 16 models on his whiteboard for selling downloadable digital music. The site is working with record labels to determine which is the best model. "Where we play our role is as a branded, thrusted customer aggregator," he says. "We want to be a one-stop place for people to get all their downloads in an easy, usable way." |
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Trader Joe |
CDnow just announced that they'll begin selling digital music online this fall. (maybe this is what nitpickem was picking up on when he said "something's in the works"?) I was a little nervous about RealNetworks' new RealJukebox making CDnow et al obsolete, but CDnow quickly turned a threat into an opportunity. |
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moehrinp |
Nitpickim, I've been trading this stock for the last six months, so far, if you depend on the stock to disappoint you can trade it well. Cdnow has been in a downtrend and I don't think it has the strength to go it alone, particularly if this (just beginning?) summer slump? converts to a real correction like it did last year. |
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nitpickem |
Something's in the works here. The stock price has been rising which leads me to believe about a potential buy-out. As an internet company it's got good name recognition. I look for a price in the mid 30's soon. Am I dreaming? Maybe it's 1 AM. |
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Zombie Shakespeare |
I'm pretty much with you Vivid, however I think it would be a real profitable (and preemptive) move for CDNow if they somehow worked a deal with the labels to become the first real-time distributor of music on the net. Now that (if it worked) would set themselves apart immediately, especially from companies like Amazon. If I heard rumors of this, I would invest, but otherwise , i really don't see the benefit. |
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vivid |
Well, the product makes it easier, but there are still no uniform standards throughout the record labels for securely selling music (real time) over the Net. Se whereas Real Networks has been positioning themselves real well for whenever that time comes, CDNow still only has to worry about companies like Amazon (which offer music and more) to specialty companies (which have knowledge and rare items). Right now, Real Jukebox only makes (in terms of getting music off the net) downloading the freebies easier (and illegals). Somewhat related, can anybody give me a good reason to invest in CDNow? Are they going to be around (or bought) in the future? |
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mrcool |
RealNetworks' RealJukebox makes it extremely easy to buy music online. Will this help or hurt CDnow and the other online music retailers? |
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fanatic |
techbull, I just read that they are now planning to call the company CDnow rather than CDnow/N2K. Maybe they read your post ![]() |
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techbull |
That article says the new company is going to be called "CDnow/N2K". That is incomprehensibly stupid. I would never invest in this company, but if they call it anything but just "CDnow", I'm not going to buy anything from them either. |
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