CDNOW

CDNOW, Inc. was a pioneering online retailer of music and related products, representing a significant chapter in the early history of e-commerce. The company was established in February 1994 by twin brothers Jason and Matthew Olim from their parents' basement in Ambler, Pennsylvania. Jason Olim, a Computer Science graduate from Brown University, and his brother Matthew, an astrophysics student at Columbia University, launched the business initially as a Telnet service in August 1994, transitioning to a retail website the following month.

The business operated on a straightforward e-commerce model, allowing customers to purchase compact discs, and later VHS and DVD movies and digital music downloads, directly from its website. Fulfillment was managed through agreements with several warehouses that shipped products directly to consumers. A key aspect of its revenue generation was its early adoption of affiliate marketing through the "BuyWeb" program, where other sites could earn commissions for sales generated through their links. CDNOW's platform was recognized for its extensive catalog, which boasted over 140,000 titles by December 1994, and features like music reviews, artist interviews, and personalized recommendations through "My CDnow".

The company experienced rapid growth, going public in February 1998 with a valuation of $342 million. At its zenith, CDNOW was valued at over $1 billion, employed over 750 people, and had offices in multiple cities including New York and London. However, the bursting of the dot-com bubble severely impacted the company. A planned merger with Columbia House fell through in March 2000, leading to a precarious financial situation. In July 2000, the German media conglomerate Bertelsmann Music Group acquired CDNOW for approximately $117 million. Following the acquisition, CDNOW's operations were progressively downsized. In November 2002, Bertelsmann outsourced the website's operations to Amazon. The CDnow.com domain was eventually taken offline permanently in 2013, marking the end of its run.

Keywords: CDNOW, online music retailer, e-commerce pioneer, Jason Olim, Matthew Olim, dot-com bubble, Bertelsmann Music Group, music sales, CD sales, affiliate marketing, online retail history, music e-tailer, digital music, compact discs, dot-com company, online shopping, music-related products, BuyWeb program, My CDnow