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Wal-Mart-Amazon
rumors boost Amazon stock
Talk that online retailer Amazon.com is
pairing up with retail giant Wal-Mart appreciably boosted Amazon shares
yesterday. If the rumors prove true, Amazon will be responsible for Wal-Mart’s
internet strategy and will receive a much-needed cash infusion.
Unprofitable Amazon has been plagued with rumors that it is running out of
cash, which it counters by saying that it will still have $900 million in
its coffers at the end of this year. Additionally, Amazon merchandise
could be somehow placed or distributed in Wal-Mart’s brick-and-mortar
stores, of which there are about 4,500. A deal with Amazon, the No.1
online retailer, would strengthen Wal-Mart’s flailing web strategy.
Wal-Mart pulled its e-commerce operations off-line twice in 2000 for
revamping. Both WalMart.com and Amazon have recently laid off staff.
Neither company has confirmed the reports yet. All the talk pushed Amazon
shares up 26 percent, to $12.63 at trading’s close.
Napster swapping goes
on, despite court ruling
Music file swapping company Napster has put filters in place that
ostensibly block the trading of copyrighted songs. The filters comply with
a promise made to a San Francisco judge, Marilyn Patel, on Friday. Napster
was supposed to install the filters this weekend, but the installation was
not noticeably in place until late on Sunday. The filters, however, are
less than effective. The filters work by blocking specific file names--a
roadblock which Napster users can avoid by renaming their files. Thousands
of popular music files are thus still available. According to Napster, the
filters have not been perfected yet. Napster is working with German media
conglomerate Bertelsmann to become a fee-based service this summer.
Reportedly, another music company, Vivendi, is interested in taking part
in the venture. But Napster may not survive until summer. Patel was asked
to rewrite an earlier injunction against Napster, and when she does, she
could all but shut the site down.
Egghead.com axes 12
percent of staff
Online computer hardware retailer Egghead.com has slashed approximately 12
percent of its workforce, or 77 positions. Forty of the firings will take
place at its Menlo Park, Calif., headquarters. Thirty-seven workers at the
company’s Vancouver, Wash., branch will lose their jobs. Both part-time
and full-time spots are being cut. Like many of the other dot.coms that
have announced layoffs, the company says that the layoffs will help it
turn a profit. The company says it plans to become profitable by the
fourth quarter this year. Egghead lost $11.2 million for the fourth
quarter of 2000. Egghead began life 17 years ago as a chain of computer
software stores. The company, which now boasts an eclectic inventory
ranging from computer peripherals to consumer electronics and vacation
packages, moved onto the web several years ago, shutting down in the
process all of its brick-and-mortar stores.
Hotmail takes flak for
facilitating spammers
Microsoft’s free email service, Hotmail, is under fire because its
members’ email addresses are easily accessible to mass marketers. Unless
they deliberately opt out, Hotmail users’ contact information is
inserted into Infospace’s White Pages directory. The opt-out box,
apparently, is easy to overlook. The result is that mass marketers can
easily obtain hundreds of email addresses, which they can bombard with
unsolicited emails, or spam. Users can receive dozens of spam messages a
day. Infospace's policy may be to not reveal email addresses, but in
reality, getting email addresses from Infospace is simple. Anyone with a
Hotmail account, which is very easy to obtain, can enter the directory listings
and see email addresses. Also, either Hotmail or Infospace has an easily
accessible "backdoor" link to directory listings that reveals
email addresses. At least one pro-privacy group, the Coalition Against
Unsolicited Commercial Email, considers the ease with which spammers can
get Hotmail addresses to be problematic.
Still looking for
clicks? Here are some rules.
While the debate drags on concerning the relevance of the click-through as
a measurement of a successful internet ad, there's no doubting that many
advertisers still seek the elusive click. For them comes a new study that
suggests there are definite methods to employ to increase an ad's
click-through rate. The study, done by the Advertising Council and
PhaseOne Communications, delineates four criteria behind all successful
banner ads: drawing the eye, engaging the mind, creating a desire for more
and facilitating action. Of the 93 banners studied by the Ad Council and
PhaseOne, all but one of the most clicked-upon banners featured animation.
Of the least clicked-upon, 35 percent lacked motion. Additionally, a
banner’s relevance is another factor that can induce web surfers to
click. About 82 percent of the banners that are most often clicked upon
promise a benefit that’s relevant in the context of the venue where they
appear.
U. Of Dayton: Don’t
apply via snail mail
High school seniors shouldn’t bother to send in their applications to the
University of Dayton in Dayton, Ohio, via snail mail. Starting with the
2002 admissions cycle, the 151-year-old Catholic university will accept
only electronic applications. The university says it is only the second
institution of higher learning to adopt such a policy; the first was West
Virginia Wesleyan University. The University of Dayton says that 60
percent of admissions candidates apply online already. Universities praise
electronic admissions procedures as big time- and money-savers, since
fewer people are needed to run such an admissions department. Schools
with electronic admissions say they aren’t concerned that the digital
divide will block students from applying electronically. A survey by
consultancy Art and Science Group shows that 94 percent of college-bound
high school seniors have internet access.

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