Books were merely the entr e that established customer relationships. Amazon is now offering those customers music, videos, toys, electronics, and even auctions. The important lesson here is that you need to evolve constantly. Most companies couldn't even schedule a first meeting in two weeks. The assumption was that great content would distinguish the most popular Web sites.
Great content is, in fact, critical.
But, for most Internet surfers, the acceptable price for great content is very close to zero. Rather than relying on selling content, successful companies will give content away to get something else back. Eric Clapton gives away album cuts to sell whole CDs, and many new artists give away entire albums to build a following. An interesting case to watch will be the Wall Street Journal, which charges for on-line access while the New York Times gives almost all its content away. I'm betting that the Times can parlay its customer relationships into more value than the Wall Street Journal will by selling its content.