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AOL: Amazon Who?

theodp writes "America Online said that it is now selling DVDs and CDs directly as part of its push into digital music, ending a temporary link it had with Amazon.com until it was able to do so itself. The step to sell physical CDs and DVDs is part of AOL's efforts to get a bigger share of the digital music pie to offset shrinkage in its dial-up Internet service and the slump in ad spending. AOL plans to build on its music offerings, which now include online music subscription service MusicNet, with a digital music store that will let users burn as many songs to CDs as they want."

34 of 108 comments (clear)

  1. CD's... by Kewjoe · · Score: 5, Funny

    Does this mean they'll include music in those damn CD's they keep sending me?

    1. Re:CD's... by youaredan · · Score: 3, Funny

      And Microsoft has "sending something useful (notepad) along with something annoying and ultimately most useful as a coaster" patent

      --
      -Digital Extremist // digitale
    2. Re:CD's... by bj8rn · · Score: 4, Funny

      If you stick one of these cd's they send you into a cd-player, you'll find that there's some very avant-garde noise on it. Whether it counts as music is up to you to decide.

      --
      Hell is not other people; it is yourself. - Ludwig Wittgenstein
  2. And all this... by Anonymous Coward · · Score: 2, Insightful

    ...from the guys that brought you Gnutella!

    rc55.com

  3. But this will be better! by xintegerx · · Score: 4, Funny

    Everybody knows Amazon will be done for. For, with every AOL STORE CD purchase, you get two CDs free of AOL's own choice!

    Even before you make a purchase!

    If you know what I mean... When you look at it this way, AOL is already the biggest CD distributor already, with the most CD's in the most homes (and trash cans.)

  4. What genius figured this out? by gpinzone · · Score: 2, Interesting

    "We need a way to boost our profits now that everyone is dropping our worthless service and getting cable and DSL. Hmmm... I know! We'll sell music! Now that Napster is gone, we don't have to worry about piracy anymore. Wait 'till our stockholders hear this! This is almost as great as my idea for AOL Airlines."

    1. Re:What genius figured this out? by SushiFugu · · Score: 3, Funny

      Whoever thought it up must be married... ;)

    2. Re:What genius figured this out? by TopShelf · · Score: 2, Interesting

      Exactly - there was a recent article over at Slate comparing Amazon to QVC, basically making the case that QVC has been miles ahead of Amazon in terms of actually generating profits. So why is AOL pursuing a strategy that's proven to be a low-margin, highly competitive one? Who knows, they're desperate...

      --
      Stop by my site where I write about ERP systems & more
  5. shrinkage? by Captain+Segfault · · Score: 2, Funny

    to offset shrinkage in its dial-up Internet service

    So, wait, who is stealing AOL dialup? More interestingly, why would people steal AOL dialup?

  6. AOL, service provider, dead at 8 by Anonymous Coward · · Score: 5, Funny

    I just heard some sad news on talk radio - useless and outdated service provider AOL was found dead in on the .com cutting floor this morning. There weren't any more details. I'm sure everyone in the Slashdot community will miss him - even if you didn't enjoy his work, there's no denying his contributions to landfills full of unopened CD's. Truly an internet bubble icon.

  7. AOL became self-aware. by Comsn · · Score: 5, Funny

    on July 4th, 2004, AOL became self-aware, it took control of communications and launched an attack on us, the humans.

    3 billion people died that day.

  8. Amazon by xintegerx · · Score: 2, Interesting

    Such a sad day for the company. They just lost an agreement with the biggest CD distributor in the country.

    1. Re:Amazon by RALE007 · · Score: 2, Informative
      RTFA, it's a total of four tiny paragraphs, the first of which is:

      An AOL spokeswoman said the Internet division of AOL Time Warner Inc. had been using Amazon on an interim basis to sell CDs and DVDs. She added that its pacts with the online retailer are still ongoing.

      --
      Beware blue cats moving at .99c
  9. Now what? by nolife · · Score: 4, Insightful

    I'd imagine that even the newest of AOL users would still be able to type in www.amazon.com in thier web browser. I assume AOL will have some type of in your face promotion for this online but unless they can undercut Amazon and the other thousand or so places to by music online on the selection you want, they will just be another place to price check before buying.

    --
    Bad boys rape our young girls but Violet gives willingly.
    1. Re:Now what? by mrpuffypants · · Score: 4, Insightful

      And now that it's legal to show your own ads over another website what's to prevent AOL from popping up a window and saying:

      Whoa! Where do you think you're going?
      Click here to buy music from AOL!

      I think that AOL is a bigger competitor to Apple's iTMS than Microsoft's new stuff. While Microsoft always tends to include "cool" new features in each successive release of Windows that doesn't mean that people will use it. Also, if they push it through the OS then I'd jump on it with the Sherman Antitrust Act in a heartbeat.

      AOL users are already used to getting features incrementally, but I get the feeling with its userbase that ACTIVELY uses the features they include they could have great success with this service.

      I say bring 'em on; just like in the Brick 'n Mortar world there should be multiple CD stores on the Internet

    2. Re:Now what? by Jardine · · Score: 2, Funny

      I'd imagine that even the newest of AOL users would still be able to type in www.amazon.com in thier web browser

      You'd think that, but you'd be underestimating the stupidity of an AOL user. Based on the users which have switched from AOL to an ISP I support, if they have the motor control to double-click a mouse 50% of the time they try, they deserve a gold star. This is what happens if you try to get them to find a web browser.

      Me: You have to open a web browser
      Them: Uh, what's that?
      Me: The program you use to look at web pages.
      Them: (silence)
      Me: Ok, are you on your desktop?
      Them: My what?
      Me: The place with a bunch of ico..pictures that you click on to do stuff.
      Them: Oooooh. Ok. Yup.
      Me: Double-click on the Internet Explorer icon.
      Them: (instantly, without looking) I don't see it.
      Me: Do you see a big blue E? Double-click the big blue E.
      Them: (27 clicks later). Hey. I thought I was with (name of ISP), not MSN.
      Me: That's just the default page that IE brings up. Type the address of a webpage in the address bar.
      Them: Where's that?
      Me: A white box near the top of the screen. It probably says msn.com in it right now.
      Them: But I don't want to be with MSN!
      Me: (hangs up)

  10. The end for the middle men? by Realistic_Dragon · · Score: 4, Interesting

    With the labels and the studios getting more and more involved in distributing directly to the customer, is this signalling the end for the middle men?

    People like Amazon will have a hard time selling music if everything from AOL Time Warner and Sony (for example) is only available direct. After all in the online space AOL TW has absolutley no need of Amazon - they are a big enough brand that people will be happy enough to buy things from them, and location is not an issue.

    Unfortunatly I can't see the removal of the cut that the middle man gets going to the consumer or even the artist.

    It'll be a good things for us geeks on a digital boycott of DRM enabled media however - you won't have to go looking to find out which ones are AOL TW productions, you can just avoid shopping at their e-store :o)

    --
    Beep beep.
    1. Re:The end for the middle men? by John3 · · Score: 3, Interesting
      It could be the end for "middle men" like Amazon, but it might be a boon to local retail stores. Two of the primary reasons for retailers were distribution and returns. Manufacturers could not profitably sell one or two pieces of a product at a reasonable price.


      The manufacturer's plants are built to package and distribute cases and pallets of materials via truck freight, not individual sales units via UPS. They rely on retailers to break down the product to individual selling units and present the product for sale. Online retail has evolved to bring the costs down (expansion of UPS and other carriers, centralized distribution, computerized inventory control) so a manufacturer can effectively become a retailer.

      However, there are still kinks to be worked out with returns. We offer UPS shipping services at our hardware store, and unhappy consumers are constantly returning stuff to Amazon, QVC, etc., griping about what a hassle it is. It's much more convenient to return a product to a local retail store...quick exchange, no return shipping fees, and potentially the opportunity for the retailer to sell additional product while the customer is back in the store. Local retail stores still have a big advantage by offering convenient returns, so there is still hope for the middle man.

      John
      Cornell's True Value

      --
      "We make our world significant by the courage of our questions and by the depth of our answers." Carl Sagan
  11. Biggest distributor of CD's maybe, but.. by msgmonkey · · Score: 2, Insightful

    it does n't mean anything because they're just distributing the same CD.

    There's quite a bit of difference between automated labeling of a single pre-packaged product such as the AOL CD and an order fullfilment process. Infact the only common denominator is that just happen to be CD's, there really is n't much overlap here.

  12. Uhh huh. I see it coming by dnoyeb · · Score: 4, Interesting

    The first step is to sell CDs directly without Amazon.

    The second step will be when Amazon's name mysteriously disappears from AOLs DNS servers.

    Third? The lengthy court battle...

  13. AOL CD's oh boy, I can't wait... by Anonymous Coward · · Score: 4, Funny

    Will it be like this:

    You'll end up getting 3 CD's a week you didn't order?

    You'll call to cancel, but there is a fee, and the CDs keep coming anyway?

    When you try to stop playing their CD's, will your stereo / DVD player fail to play CD's from other sources?

    Will DVD Owners end up forming a class action law suit to regain control of their TVs?

    AOL - is that pronounced 'A - Hole's ? Right?

  14. Will AOL become the Microsoft of the internet ? by Krapangor · · Score: 5, Interesting
    It seems that AOL aquires more and more customers and expands itself to more and more services.
    It story seems to me very similar to the history of Mircosoft:a single company with a proprietary, incompatible products steadily increased their market share by aggressive advertisement until they became the dominant monopolist.
    Don't be fooled by the fact that AOL is just a service provider. If they control over 70 percent of the internet access of private customers all players in the network business would have to follow their word and do their bidding. They could dominate standards bodies and in fact enforce proprietary standards locked by IP and patents on the whole internet.

    This makes me wonder if it's now time for a GPL service provider. By following the principles of the free software movement, they could set up free WIFI access to the internet. This would have the nice side effect that the US goverment won't be able to censor the internet any longer. Furthermore we might get all free broadband access without paying huge fees to greedy companies which do nothing for the community.

    --
    Owner of a Mensa membership card.
    1. Re:Will AOL become the Microsoft of the internet ? by Lord+Kholdan · · Score: 2, Insightful

      Sheesh! What has GPL got to do with being an ISP? Nothing!

      Even if you follow up the principles of free software movement doesn't make you a GPL ISP. What's next? GPL ice cream?

      GPL is a software licence, don't try to make it into something it's not suited for.

  15. Dilemma by mrpuffypants · · Score: 2, Interesting

    I realize they're talking about buying CDs and DVDs, but eventually they'll have to move it into Internet downloads like Apple's iTMS.

    Obviously they're use some type of DRM (most likely developed by their A/V gurus at Nullsoft....Frankel'll love that one), but once an AOL user leaves the collective will they still get to take their music with them or will they require AOL for the rest of their adult life?

    That it, until they lose another $99,000,000,000 this year and are forced out of business :)

  16. it'd be so smart by TomSawyer · · Score: 3, Interesting
    It'd be so smart of them to leverage their Time Warner division by giving buyers of their own stuff the right to download the MP3s on the spot so they can listen to the music while their CD is in the mail.

    Or maybe just set up a playlist they can stream off the order status page of whatever they ordered. Once the order is fulfilled the playlist can go away along with the order page.

    --
    If you disagree then it must be overrated, redundant or trolling.
  17. Sad news when AOL has to be the innovator by heironymouscoward · · Score: 4, Insightful

    The music industry is really in dire straits when AOL can take the lead in selling music. But it is a good move, and probably good for consumers. selling music on disc and as downloads makes sense. I suspect we are seeing the slow but real migration of music distribution from offline retail to online retail. When Walmart start selling tracks you know it's finally happened.
    The more companies do this, the more competition and the better the choice for the consumer. If there is one single way to eliminate those pesky P2P people, this is it.
    Oh, and AOL, while you're at it, please start planning to sell TV series and movies the same way.

    --
    Ceci n'est pas une signature
  18. heh. by Rhinobird · · Score: 3, Funny

    to offset shrinkage in its dial-up Internet service

    Must be cold in the modem pool...

    --
    If Mr. Edison had thought smarter he wouldn't sweat as much. --Nikola Tesla
  19. Here's a thought... by Kyouryuu · · Score: 4, Funny
    Here's a thought.

    If AOL really wanted to save money, they'd stop supplying every friggen' store and consumer in America with two thousand CDs whenever a new version came out. :P

  20. Re:Is Amazon still Spamazon? by generic-man · · Score: 2, Informative

    I've bought from Amazon all the time, and I've never received a promotion I didn't ask for. The unique e-mail address I use for Amazon has never been used for any other purpose than informing me of my order status.

    Geeks sure can hold grudges.

    --
    For more information, click here.
  21. Free Music? by heli0 · · Score: 2, Interesting

    Why not just offer free streaming music of the entire TimeWarner collection of artists to AOL users? Seems like a decent way to attract customers.

    AOL does own the following artists' works: Frank Sinatra, Fleetwood Mac, Eric Clapton, Neil Young, James Taylor, The Grateful Dead, Talking Heads, B-52s, Doobie Brothers, Little Feat, Van Morrison, The Ramones, Depeche Mode, The Kinks, Paul Simon, Van Halen, Black Sabbath, Miles Davis, Randy Newman, Dire Straits, Prince, Emmylou Harris, Madonna, Linkin Park, Enya, Faith Hill, Red Hot Chili Peppers, Tom Petty, R.E.M., Disturbed, Goo Goo Dolls, Blake Shelton, Trick Pony, Seal, Green Day, Sixpence None The Richer, Steely Dan, Josh Groban, The Flaming Lips, Jaheim, SK, D'Mello, Souljahz, Brad Mehldau, Joshua Redman, Pat Metheny, Robert Randolph, The Used, Glassjaw, and Barenaked Ladies; as well as thousands of others.

    --
    Whenever the offence inspires less horror than the punishment, the rigour of penal law is obliged to give way...
  22. Amazon.screwed by Ars-Fartsica · · Score: 2, Interesting
    There are so many guns pointed at Amazon.com right now, I would say that the future of the firm is threatened. The loss of AOL is a minor issue. Amazon more directly faces undercutting from capable shipping merchants all over the web. Walmart beats Amazon on price nearly 100% of the time now. Overstock.com is also beating Amazon on items in stock. Amazon is also a massive debtor in markets with razor thin margins and massive competition. The massively overinflated AMZN stock is now subject to huge shorting positions, making it even harder to compensate employees in the future (almost anyone joining now will have underwater stock in two years).

    It will be interesting to see if they are around in five years.

  23. Quick, we're sinking! Bolt on more lifeboats! by Crash+Culligan · · Score: 2, Interesting
    Okay, so let's see if I understand this correctly...

    AOL, one of the largest (and arguably hoariest) national internet service providers around, is losing business because of some questionable business practices and needs to generate more revenue.

    In order to do this, they've severed ties with a prominent internet business (Amazon) and are going to attempt to run their own physical media music store...

    ... bearing in mind that the music industry is also taking a royal screwing due in one way or another to their own questionable business practices. People are avoiding buying CDs for whatever reason. (Either because they can get their music online through P2P, because they think the current catalog selections are tepid crap, or because they are trying to boycott the industry. More likely a combination of the three.)

    Excuse me? Where's the sense in this?? If you have a business model that's doing poorly, you are not supposed to tack on another business model that's also doing poorly! If the problem is too much fat, the solution is not to tack more on.

    As someone at Adbusters said, "Economists must learn to subtract." While the specific application is different in this case, the basic principle holds true for most businessmen, accountants, and marketers who can only think of "bigger" and "more profitable" and not "streamlined" and "more responsible."

    --
    You cannot truly appreciate Dilbert until you read it in the original Klingon.
  24. I bought a CD direct from Warner Records by Tiro · · Score: 2, Interesting

    I bought Less Than Jake's new CD called Anthem in a prerelease special. Buying direct from the record company gave me the bonus of having it [supposedly] autographed by all five members of the band, but guess what else? It was copy protected.

  25. Re:Uhh huh. I see it coming by cpeterso · · Score: 2, Interesting


    or a more legal method might be to secretly slow down all traffic to amazon.com from AOL's Walled Garden. How would anyone find out? Amazon.com still works; it's just twice as slow.