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Barnes & Noble, Inc. Message Board

  • redr0bert redr0bert Jul 20, 2000 8:36 AM Flag

    Bertelsmann & CD-now

    Any clue where they're going with this one?
    Bertelsmann seems to be intent on setting up a distribution
    channel for their music, but don't they already have that
    in bnbn? They don't seem to be folding it into bnbn,
    but perhaps they'll be sharing information for the
    sale of non-competing merchandise.

    I can't
    believe that they'd move forward with this without
    discussing it with their partner BKS, so their must be a
    plan. Perhaps they've made overtures to buy out BKS,
    but this can't be discussed prior to setting a
    definitive deal. I'm not prone to buyout speculation (anyone
    who has been around this board for a while knows
    that), but it could make sense here. If they bought out
    BKS, they'd essentially have BNBN, so they could then
    roll CDNW into BNBN without giving anything away to
    their partner. Hmmm...

    Time will


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    • but Bertlesman owns BMG Music Service which use
      to be RCA music.

      This makes 3 outlets over
      the web for this type of product.

      I think the three outlets attack different types of

      BKS serves general buyers that are there
      to buy books but then think, "oh yeah, I need a

      CDNW is for pure CD buyers

      BMG is for people
      buying CD on the cheap.

      Bertelsman also owns a
      bunch of book publishers like Random House and Bantom
      Doubleday Dell.

      I would not doubt that Bertelsman
      will eventually go for all of BKS then they will have
      a corner on the market for both book and CD
      If Bertelsman buys BKS, the independent booksellers
      will be yelling foul. If BKS was allowed to buy out
      Ingram Book Distributers last year, I'd bet that
      Bertelsman would have bought them by now, but BKS still does
      not have enough distribution points.


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