Similar concerns were cited about K-Tel, which sells classic rock compilations, and has more than
doubled since Tuesday, when it announced its online music and home video service would be featured
on the Microsoft Network Shopping Channel. Although K-Tel stock retreated $4.625 to $28 on Nasdaq
on Thursday, it has held onto most of the gains associated with the Microsoft deal.
It is a deal some industry experts say the average investor doesn't understand. They say simply forming
an alliance with an industry leader like Microsoft is by no means a guarantee of success.
''We did that exact same deal with Microsoft, and we didn't even think it was worth announcing in a
press release,'' said the president of another online retailing business, who asked not to be named.
''Microsoft doesn't exactly have the No. 1 trafficked Web site.''