Software distribution processes

The online book retailer Amazon seems to be moving in a the direction of a hybrid supply chain model. Amazon's core business is the distribution of physical products (books, DVD's, electronics, etc.), but now (in reaction to competitive demand) it is looking to begin selling digital assets over the internet. Its Amazon Pages and Amazon Upgrade programs will allow customers buy soft-copy versions of books, while there are rumours that it will start selling digital music and videos over the internet in the months to come.

How it does this will be very different to its current, quite traditional, distribution process: no inventories or physical transportation issues, new pricing policies, upgrade issues. It will be interesting to see how it all works out.