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Aol Store Brings Commerce In-house

By BILL HOLLAND
Publication: Billboard
Date: Saturday, July 26 2003
AOL is getting into the e-commerce business.

The company quietly launched a music and video store on its site at the end of June. Alliance Entertainment is providing fulfillment services.

AOL customers previously made purchases by

clicking on a link to amazon.com. That relationship is being phased out.

As part of the new shopping feature, AOL members will be able to keep their credit card and shipping information on file.

Transactions can be completed in two clicks without leaving the AOL environment.

"This is the first step in a strategy the company is embracing overall," AOL Entertainment VP Bill Wilson says of the commerce initiative.

He adds, "Commerce has [never] been the most seamless experience. Now we're integrating it directly into the programming, where it's almost an impulse buy."

The addition of integrated shopping technology also lays the groundwork for AOL to launch a digital download store later this year.

The company says it plans to offer downloads for less than $1.

AOL Music VP/GM Evan Harrison says the company wants to capture the existing demand for music and video among its members.

He says that AOL programming features regularly push business to its e-commerce partners.

For instance, Harrison says, AOL First Listen programming frequently translates into the featured artist topping the charts at amazon.com within 24 hours.

Harrison says the company looks to drive its own e-commerce business through its First Listen, First Look, Sessions @ AOL and BroadBAND Rocks programming.

Members will also have the opportunity to pre-order upcoming releases.

A more formal launch of the AOL store is expected later in the year.

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