[Script Info]
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[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:01.48,0:00:12.92,Default,,0000,0000,0000,,>> Hi there. Who are you? ≫>\NI'm Jeff Bezos. ≫> And what is your
Dialogue: 0,0:00:12.92,0:00:17.23,Default,,0000,0000,0000,,claim to fame? ≫> [laugh] I'm the\Nfounder of Amazon. Com. ≫> Where did
Dialogue: 0,0:00:17.23,0:00:21.06,Default,,0000,0000,0000,,you get an idea for Amazon. Com? ≫>\NWell, three years ago, I was in New York
Dialogue: 0,0:00:21.06,0:00:25.08,Default,,0000,0000,0000,,City, working for a quantitative hedge\Nfund. When I came across the startling
Dialogue: 0,0:00:25.08,0:00:29.29,Default,,0000,0000,0000,,statistic that web usage was growing at\N2300 percent a year. So I decided I would
Dialogue: 0,0:00:29.29,0:00:33.43,Default,,0000,0000,0000,,try and find a business plan that made\Nsense in the context of that growth. And I
Dialogue: 0,0:00:33.43,0:00:38.83,Default,,0000,0000,0000,,picked books as the first best product to\Nsell online for making a list of, like
Dialogue: 0,0:00:38.83,0:00:42.86,Default,,0000,0000,0000,,twenty different products that you might\Nbe able to sell. And books were great, as
Dialogue: 0,0:00:42.86,0:00:47.21,Default,,0000,0000,0000,,the first best because books are\Nincredibly unusual in one respect, and
Dialogue: 0,0:00:47.21,0:00:51.38,Default,,0000,0000,0000,,that is that there are more items in the\Nbook category than there are items in any
Dialogue: 0,0:00:51.38,0:00:56.28,Default,,0000,0000,0000,,other category by far. Music is number\Ntwo. There are about 200,000 active music
Dialogue: 0,0:00:56.28,0:01:00.25,Default,,0000,0000,0000,,CDs at any given time. But in the book\Nspace there are more than 3,000,000
Dialogue: 0,0:01:00.25,0:01:04.76,Default,,0000,0000,0000,,different books worldwide, active and in\Nprint in any given time across all
Dialogue: 0,0:01:04.76,0:01:08.71,Default,,0000,0000,0000,,languages, more than one and a half\Nmillion in English alone. So when you have
Dialogue: 0,0:01:08.71,0:01:13.41,Default,,0000,0000,0000,,that many items it literally build a store\Nonline that couldn't exist any other way.
Dialogue: 0,0:01:13.41,0:01:18.26,Default,,0000,0000,0000,,And that's important right now because the\Nweb is still an infant technology.
Dialogue: 0,0:01:18.26,0:01:22.54,Default,,0000,0000,0000,,Basically, right now, if you can do things\Nusing a more traditional method, you
Dialogue: 0,0:01:22.54,0:01:26.73,Default,,0000,0000,0000,,probably should do them using the more\Ntraditional method. ≫> What kind of
Dialogue: 0,0:01:26.73,0:01:30.83,Default,,0000,0000,0000,,inventory do you keep? ≫> We\Ninventory the best-selling books at any
Dialogue: 0,0:01:30.83,0:01:35.04,Default,,0000,0000,0000,,given time worth inventorying in our own\Nwarehouse, only a couple of thousand
Dialogue: 0,0:01:35.04,0:01:39.72,Default,,0000,0000,0000,,titles. And then have, we do almost in\Ntime inventory for another 400,000 titles
Dialogue: 0,0:01:39.72,0:01:44.24,Default,,0000,0000,0000,,or so. We get those from a network of\Nelectronic, we order, order electronically
Dialogue: 0,0:01:44.24,0:01:47.99,Default,,0000,0000,0000,,from a network of wholesalers and\Ndistributors. We order those today,
Dialogue: 0,0:01:47.99,0:01:52.75,Default,,0000,0000,0000,,they're on our loading dock the next\Nmorning. Then for another 1.1 million
Dialogue: 0,0:01:52.75,0:01:57.48,Default,,0000,0000,0000,,titles, we get those directly form 25,000\Ndifferent publishers, and those can take a
Dialogue: 0,0:01:57.48,0:02:01.56,Default,,0000,0000,0000,,couple of weeks to get. And then the\Nthere, there are million of out-of-print
Dialogue: 0,0:02:01.56,0:02:06.33,Default,,0000,0000,0000,,books in our catalog. We have a catalog of\Ntwo one-half million books altogether.
Dialogue: 0,0:02:06.33,0:02:10.75,Default,,0000,0000,0000,,Those million out-of-print books, some of\Nthem we can get., some of them we can't.
Dialogue: 0,0:02:10.75,0:02:15.38,Default,,0000,0000,0000,,But we find them if we can and then we\Nship them to our customers. We do kind of
Dialogue: 0,0:02:15.38,0:02:19.18,Default,,0000,0000,0000,,a search on those. ≫> What's the\Nalmost-in-time inventory? ≫>
Dialogue: 0,0:02:19.18,0:02:23.81,Default,,0000,0000,0000,,Almost-in-time inventory is the phrase we\Nuse to describe the whole selection of, of
Dialogue: 0,0:02:23.81,0:02:27.78,Default,,0000,0000,0000,,books that we offer. It's basically the\Nthings that you know, below the 2000th
Dialogue: 0,0:02:27.78,0:02:32.07,Default,,0000,0000,0000,,best selling book up to the 400,000th best\Nselling book. Those are the titles we can
Dialogue: 0,0:02:32.07,0:02:36.44,Default,,0000,0000,0000,,get from a network of more than a dozen\Ndifferent wholesalers. So if a customer
Dialogue: 0,0:02:36.44,0:02:41.00,Default,,0000,0000,0000,,orders a book from us today, we order that\Nbook from our wholesalers today and that
Dialogue: 0,0:02:41.00,0:02:45.50,Default,,0000,0000,0000,,book shows up on our loading dock the next\Nmorning. And then we can ship it to the
Dialogue: 0,0:02:45.50,0:02:49.62,Default,,0000,0000,0000,,customer. ≫> They say one of the\Ntoughest things to do on the internet is
Dialogue: 0,0:02:49.62,0:02:53.01,Default,,0000,0000,0000,,to capture mindshare. What was your\Nsecret? How did you do that? ≫>
Dialogue: 0,0:02:53.01,0:02:57.76,Default,,0000,0000,0000,,Yeah, even more generally, I agree with\Nyou that, you know capturing mindshare on
Dialogue: 0,0:02:57.76,0:03:02.01,Default,,0000,0000,0000,,the internet is extremely difficult. You\Nknow more generally, it's the late
Dialogue: 0,0:03:02.01,0:03:06.61,Default,,0000,0000,0000,,twentieth century, not just the internet.\NYou know, capturing attention. Attention
Dialogue: 0,0:03:06.61,0:03:10.18,Default,,0000,0000,0000,,is a scarce commodity of the late\Ntwentieth century. And, we, one of the
Dialogue: 0,0:03:10.18,0:03:14.96,Default,,0000,0000,0000,,ways that you can do that, and it's the\Nway that we did it, was by doing something
Dialogue: 0,0:03:14.96,0:03:19.24,Default,,0000,0000,0000,,new and innovative for the first time that\Nactually has real value for the customer.
Dialogue: 0,0:03:19.24,0:03:23.51,Default,,0000,0000,0000,,That's a hard thing to do. But if you do,\Ndo that, then newspapers will write about
Dialogue: 0,0:03:23.51,0:03:27.49,Default,,0000,0000,0000,,you, what you're doing. Customers will\Ntell other customers. And the, you'll get
Dialogue: 0,0:03:27.49,0:03:31.06,Default,,0000,0000,0000,,a huge word of mouth fanout. And, and that\Ncan really drive and accelerate
Dialogue: 0,0:03:31.06,0:03:34.57,Default,,0000,0000,0000,,businesses. And that's what happened with\Nus. In the first year of opening
Dialogue: 0,0:03:34.57,0:03:39.58,Default,,0000,0000,0000,,Amazon.com to the public we didn't do any\Npaid advertising and all of our growth was
Dialogue: 0,0:03:39.58,0:03:43.07,Default,,0000,0000,0000,,fueled by word-of-mouth and media\Nexposure. ≫> I saw little ads at the
Dialogue: 0,0:03:43.07,0:03:47.04,Default,,0000,0000,0000,,bottom of the column of the New York\NTimes. ≫> That was our very first
Dialogue: 0,0:03:47.04,0:03:51.34,Default,,0000,0000,0000,,advertising. We don't do that any more but\Nat the very, at the very beginning we did
Dialogue: 0,0:03:51.34,0:03:56.02,Default,,0000,0000,0000,,little tiny ads at the bottom of the front\Npage of the New York Times. ≫> I
Dialogue: 0,0:03:56.02,0:04:00.06,Default,,0000,0000,0000,,thought that was very clever. It's sort of\Nusing a URL as a macro because I, I read.
Dialogue: 0,0:04:00.06,0:04:03.10,Default,,0000,0000,0000,,≫> And it expands. ≫> We're a\Nbookstore, click here. ≫> Right,
Dialogue: 0,0:04:03.10,0:04:07.09,Default,,0000,0000,0000,,that's a great way to think of it.\N≫> And it worked very well
Dialogue: 0,0:04:07.09,0:04:10.96,Default,,0000,0000,0000,,apparently. ≫> I don't know, you\Nknow. The problem with that kind of
Dialogue: 0,0:04:10.96,0:04:16.44,Default,,0000,0000,0000,,advertising is it's extremely difficult to\Ntrack. ≫> Put a different URL for
Dialogue: 0,0:04:16.44,0:04:21.60,Default,,0000,0000,0000,,every [laugh]. ≫> That's the\Nproblem, you want people to start to learn
Dialogue: 0,0:04:21.60,0:04:26.33,Default,,0000,0000,0000,,your URL. So you don't wanna actually use\Na different one. And, it's very easy. One
Dialogue: 0,0:04:26.33,0:04:30.34,Default,,0000,0000,0000,,of the great things about online ads. We\Ndo advertising today in maybe 40
Dialogue: 0,0:04:30.34,0:04:36.27,Default,,0000,0000,0000,,different, on, on different websites, we\Ndo banner ads and that advertising is very
Dialogue: 0,0:04:36.27,0:04:40.08,Default,,0000,0000,0000,,easy to track in terms of knowing how\Neffective it is. So we know, for each
Dialogue: 0,0:04:40.08,0:04:45.24,Default,,0000,0000,0000,,piece of creative in each venue, not only\Nhow many click throughs we get, but how
Dialogue: 0,0:04:45.24,0:04:49.10,Default,,0000,0000,0000,,many sell throughs we get, how many\Ndollars of revenue it generates per ad
Dialogue: 0,0:04:49.10,0:04:53.57,Default,,0000,0000,0000,,dollar spent on that creative and that\Nvenue, and that is a sort of a marketer's,
Dialogue: 0,0:04:53.57,0:04:57.83,Default,,0000,0000,0000,,you know, Nirvana in a certain sense.\N≫> Well, it's an exciting place to
Dialogue: 0,0:04:57.83,0:05:01.39,Default,,0000,0000,0000,,be on the web right now. ≫> Oh, it\Nabsolutely is. I mean It's just
Dialogue: 0,0:05:01.39,0:05:05.60,Default,,0000,0000,0000,,incredible. This is. What's really\Nincredible about this is that this is day
Dialogue: 0,0:05:05.60,0:05:10.01,Default,,0000,0000,0000,,one, this is the very beginning, this is\Nthe kitty hawk stage of electronic
Dialogue: 0,0:05:10.01,0:05:14.60,Default,,0000,0000,0000,,commerce. We're moving forward in so many\Ndifferent areas and lots of different
Dialogue: 0,0:05:14.60,0:05:20.98,Default,,0000,0000,0000,,companies are as well. In the late\Ntwentieth Century it's just a great time
Dialogue: 0,0:05:20.98,0:05:27.82,Default,,0000,0000,0000,,to be alive. You know, we're gonna find\Nout that, I think, a millennium from now,
Dialogue: 0,0:05:27.82,0:05:34.84,Default,,0000,0000,0000,,people are gonna look back and say, wow,\Nthe late twentieth Century was really a
Dialogue: 0,0:05:34.84,0:05:38.30,Default,,0000,0000,0000,,great time to be alive on this planet.