Amazon.com Signs Music Distribution Deal

Trying to increase its share of pre-recorded music
sales, Amazon.com Inc. Wednesday signed an
agreement with OnRadio (formerly
ElectricVillage) to sell music through OnRadio’s nationwide network of
radio station Web sites.

Under terms of the agreement, Amazon.com will have exclusive rights to
sponsor the playlists on the radio stations’ sites, and to sell music from
those lists. Financial details of the agreement were not disclosed.

“Radio stations will now be able to capitalize on the demand they create on
air, and their listeners will have a quick, easy way to buy the music they
love,” said Ricardo Ramirez, president and chief executive officer of
OnRadio. “We’re particularly pleased to welcome Amazon.com as an e-commerce
ally because of the company’s powerful brand and tradition of exceptional
quality customer service.”

The program is set to be rolled out to OnRadio affiliates over the next 30
days.

“Radio moves music; air play is demonstrating its influence upon CD sales
not only over the counter but also on the Web,” said
Greg Hart, Amazon.com’s music marketing manager “Working with OnRadio is
logical for us because of the many stations and wide
range of formats in its network.”

Wednesday’s agreement bolsters Amazon.com’s presence in the music retail
sector. It is a recent entry into the music sales arena, and faces
competitors like CDnow, N2K and others. The industry has lots of room
for growth since analysts project Internet music sales will rise from
about $300 million this year to $2.5 billion in 2002.