DATA POINTS: PUBLISHER COUNTS BY CHANNEL.

Are publishers abandoning the retail channel? That's still a controversial question, but the latest numbers from PC Data point to an exodus in most retail categories. During the first eight months of 1999, the number of publishers who sell through mail order, mass merchants, and software-only stores dropped by more than 12% against the same period in 1998. Only superstore chains, which tend to have the broadest inventory mix, kept roughly the same publisher count as the year before. Meanwhile, PC Data reports, the count of publishers who sell through online resellers jumped 23% from 1,002 to 1,231. "There is still no substitute for getting a product on a shelf at a conveniently located retail store," says PC Data analyst Roger Lanctot, who sees a continuing role for the retailer "as a selective merchandiser of important products." But Lanctot also predicts that by the end of this year the online resellers will have a richer base of publishers and titles than all other retail channels combined.

Roger Lanctot, director of research, PC Data, 11260 Roger Bacon Dr., Reston, Vir. 20190; 703/435-1025. E-mail: [e-mail].

McKINSEY & CO. global electronic practice head Mike Nevens on his belief that old-line retailers will ultimately prevail against pure online merchants: "The large bricks-and-mortars will come back with a vengeance. They have lower costs, purchase in larger quantities, and have long-standing relationships with suppliers and well-tuned supply chains." (Quoted in Fortune, 10/11/99)

PIXELON.COM chairman Michael Fenne on his company's decision to spend $10 million on a Las Vegas launch party: "Doing things a little bit at a time is a recipe for failure in the Internet space. The reality is that the other guys in this space just don't have the guts." (Quoted in The Wall Street Journal, 10/28/99)

INSTITUTIONAL VENTURE PARTNERS general partner Timothy Haley on his firm's Web investment strategy: "It's all about creating the No. 1 position and leveraging the Christmas season. No. 1 is great, No. 2 is pretty good, and No. 3 is why bother." (Quoted in Business Week, 11/1/99)

BANCBOSTON ROBERTSON STEPHENS director of investment banking Todd Carter on Web valuations: "The world isn't punishing most people right now for lack of focus. So far, companies are doing exactly what the capital markets tell them to: getting customers. By the end of 2000, and during the course of 2001, Internet companies will find more traditional metrics applied, and they'll have to start paying the piper." (Quoted in Inter@ctive Week, 12/6/99)

LIVEPERSON chief executive Robert LoCascio on Web shopping: "The ad campaigns make it look so easy. But when you try shopping online, it's just a bunch of graphics. You're expected to figure it out on your own." (Quoted in Forbes, 12/27/99)

ICONOCLAST editor Michael Tchong on Web advertising visibility campaigns: "Dot-coms are spending like drunken sailors on offline branding. All the offline media are withholding inventory so prices can go up. Media companies are happier than a pig in you-know-what." (Quoted in Upside, January 2000)

NATIONAL ASSOCIATION OF SECURITIES DEALERS chief information officer Gregor Bailar on Microsoft's problems dealing with the complexity of Windows 2000: "There may not be enough software hours in a day to make it all work together." (Quoted in Business Week, 2/22/99)

MICROSOFT group vice president James Allchin on finally finishing Windows 2000: "There were many people who thought we'd never finish this. But my background suggests that betting against me is a bad idea." (Quoted in The Wall Street Journal, 12/16/99)

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