Bytes Beat Bricks

dit THE CHARTIST BYTES BEAT BRICKS WEALL KNEW that the 1990s tech boom would change the world. But then a funny thing happened: For years brick-and-mortar companies happily co- existed with their e-rivals. Borders, for instance, actually increased sales from 2000 to 2005 asit dueled Amazon. Now those days seem to be ending. Digital companies are so big, and growing so fast, that they're obliterating old busi- nesses. Consider these four examples: The U.S. Postal Service says it will be insolvent by the end of 2011 without a bailout. Blockbuster and Borders have filed for bankruptcy. And music stores keep closing. -Scott Cendrowski first Cellphone text messages sent: up 1,200,243% from 2000 FIVE-YEAR PERFORMANCE, TEXTS VS. MAIL 1.9 1.200.000% BRICKS AND trillion MORTAR CIRCLE SIZE SHOWS VOLUME The U.S. Postal Service is on track to lose $6 billion this year, as e-mails and texting reduce mail volumes faster than postage VERTICAL SCALE 900,000 SHOWS GROWTH 600,000 USPS mail volume 300,000 Pieces of mail shipped by USPS 170.6 billion fees can rise. Projected loss, fiscal year 2011: $6 billion -19% Netflix sales: NETFLIX VS. BLOCKBUSTER 40,000% up 43,101% from 1999 ... Blockbuster hit 4,000 $2.2 30.000 billion stores in two decades. Then, in 1997, Reed Hastings got charged a $40 late fee on Apollo 13 and founded Netflix. The rest is history. 20,000 Blockbuster sales Filed for bankruptcy, September 2010 Blockbuster sales 10.000 $4.1 billion -29% AMAZON VS. BORDERS Amazon sales: 800% $14.9 up 808% from 1999' billion Amazon almost 600 single-handedly bankrupted the Borders sales 400 No. 2 bookseller in Filed for bankruptcy, February 2011 a decade. Barnes & Noble is fighting back with its Nook. Borders sales 200 $2.3 billion -44% 11.7 ITUNES VS. CDS Songs sold on iTunes: up 1,169,900% from 2003 billion 1,000,000% iTunes made its debut in 2003, with devastating effects on music retailers. Tower Records went bust in 2004. 800.000 600,000 400,000 Musicland folded in 2006. FYE has shriveled. Songs sold on CDs* .................. Songs sold on CDs 200,000 2.8 billion -60% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 10/ FORTUNE July 4, 2011 Graphic by NICOLAS RAPP Additional reporting by Marilyn Adamo *EQUALS 12 SONGS PER CO 'REVENUE FIGURES FOR 1999 AND 2000 ARE THE COMPANY'S TOTAL SALES, ALL OTHER YEARS' FIGURES REFLECT SALES IN ITS MEDIA DIVISION, WHICH INCLUDES BOOKS, MOVIES, AND MUSIC. SDURCES: COMPANY SECFILINGS; APPLE FIGURES; BLOOMBERG; U.S. POSTAL SERVICE; NIELSEN SOUNDSCAN; INFORMA TELECOMS & MEDIA

Bytes Beat Bricks

shared by GeeGrl on Sep 20
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We all knew that the 1990s tech boom would change the world. But then a funny thing happened: For years brick-and-mortar companies happily coexisted with their e-rivals. Borders, for instance, actuall...


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