It's got the beat
While a wireless ASP might not be right for everyone, it was a fit for music e-tailer CDNow. While other dot-coms have leapt into wireless by spending millions of dollars on development and bleeding-edge features, CDNow couldn't afford that. Like a growing number of dot-coms, CDNow was running low on cash before being acquired in September by Bertelsmann AG.
"We wanted to control the cost equation here and not repeat the mistake of companies overspending money," said Srdjan Loncar, team leader for wireless at CDNow, in Fort Washington, Pa. "I really don't think you need all the bells and whistles to learn the potential of the [wireless] application."
The wireless initiative started at the beginning of the year with Loncar pulling together a team from across the company that now numbers about four people focused on wireless and another 10 who help out when needed. Few of them had much experience, however, with wireless technology or strategy. So in May, CDNow signed on with wireless ASP ViaFone. The company was able to launch its first WAP application five months later, on Oct. 16. Loncar would not disclose pricing details.
The first iteration of CDNow's wireless offering is what Loncar himself calls "bare bones." Wireless browsers can search CDNow, browse the music charts of top sellers, get recommendations and order CDs. It doesn't yet allow consumers to purchase other products such as DVDs and videocassettes.
CDNow's plans call for adding access from Palm Vs and VIIs soon. Next will be two-way pagers and voice access.
Although its current wireless offering is minimal, the important thing is that, using ViaFone, CDNow was able to gain valuable wireless experience quickly. That's critical because Loncar expects wireless to bring CDNow a new link to customers and potential sales increases. And for struggling dot-coms such as CDNow, that's crucial.
"I wanted to make sure we lay the foundation from a technological perspective but also from a business perspective of making a wireless application work," Loncar said. "So when there's mass consumer acceptance, we are ready to rock 'n' roll."
