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Sunday, June 19, 2005

Amazon As Content, Networking Company!!

Jeff Jarvis writes,Amazon was in the distribution business and it did a great job of finding new efficiencies and market shares and customer needs in it. But distribution has been dethroned as a business. Owning the broadcast tower still makes you money - but as your audience departs for limitless new competition, it won't grow. Owning a cable franchise is a great monopoly - but growth is there mostly because you can sell new services, broadband and VOIP, and before you know it, you'll be nothing but the pipe: the next telco. Owning a monopoly newspaper used to be a great business - until more efficient marketplaces replaced yours and your presses and trucks and
Amazon was in the distribution business. But now it has relationships with millions of customers and a network of sales people - that is, its own customers writing reviews and creating valuable data about likes and dislikes. Now it has a brand that is trusted for content. Now it can enter the content business. Amazon isn't a content company,producing content itself. Amazon is not a network. But Amazon is a networking company, putting together buyers and sellers, readers and writers (and vice versa). Sometime soon, someone will chose to publish via Amazon directly to the public and skip the middleman formerly known as the publisher. That makes Amazon merely a conduit. One could say that it's about distribution but in the case of digital content, the distribution is meaningless. It's just a place that helps A find B. It's a maven.

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