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...
but Bertlesman owns BMG Music Service which use to be RCA music.
This makes 3 outlets over the web for this type of product.
Personally, I think the three outlets attack different types of consumers.
BKS serves general buyers that are there to buy books but then think, "oh yeah, I need a CD"
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 products. 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.