amazon

Amazon Pushing Their Luck

They're hardly out of the tech headlines these days - Amazon - and they're back in them again with their latest offering, called "Amazon Video on Demand." I have to admit I like the name, I'm a big fan of stating the obvious and it's a much better name than calling their new service "Wendy," or some meaningless made-up piece of with-it jargon. It's actually a clever service, too, they've given it plenty of features and done everything they can to make it idiot-simple to use. It's possibly even easier than going to YouTube to find something to watch. So why do I think they're pushing their luck? Why do I think they could fall flat on their faces with this?

The Taxman - Coming to a Web Site Near You Soon

"The most important ways in which I think the Internet will affect the big issue is that it will make it more difficult for government to collect taxes." Milton Friedman

Oh, how little did he know. There is no force known to man that can stop a greedy government. The State Government of New York is that greedy government right now. Online retailers across America are struggling to come to terms with a new New York State law that requires them to register and collect taxes on sales into the State if they have affiliates there. Affiliates in this instance are sites that have links to retailers such as Amazon that earn them a small commission on any sales they generate. Lots of places carry these small ads, you see them everywhere even on the most prestigious sites. But if that affiliate happens to be based in New York, this new law kicks in and affects the retailer, whether they themselves are New York-based or not.

It Pays to Advertise

Advertising spending on-line is growing at a frightening rate in the UK, being forecast to grow by 30.8% to £3.4 billion this year. That compares with television advertising which will grow by just 1% to around £3.56 billion by the end of 2008. It is almost certain to exceed television spending by the end of 2009, according to Group M, a media buying and planning group who are well qualified to know these things. It's a prospect that fills me with dread, quite frankly.

Mark Griffin

Mark has a long history of working with computers and the Internet, he has delivered presentations and courses on many topics over the years. His opinion is actively sought and highly valued.

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