Alternately, they're doing what Reel.com did when it sold Titanic
cassettes for 1o bucks--Taking a huge
loss early on, in order to get a customer base. They want to compete with
Ebay and amazon/cdnow at the same time. I bet someone sees enormous
potential in combining both kinds of Internet superstores, so they've
found a few big investors, bought in bulk, and are taking a big hit in
hopes of a future near-monopoly.
Sam