Question-and-Answer Session
Operator
(Operator Instructions). We'll pause for just a moment to compile the Q&A roster. Your first question comes from [Brent Ryerson] of (inaudible) & Company.
Unidentified Analyst
Couple of quick questions for you. Any thoughts that you want to offer us on the book pricing war with Wal-Mart, Barnes & Noble, Borders.
Patrick Byrne
Well I just saw a good analysis come out from somebody. I just thought this afternoon that really hit the nail on the head in terms of what you could expect us to cost Amazon versus what you could the benefit and I made some assumptions about how much they loose a book on Sarah Palin's and book and things like that, I am not sure. The assumptions were dead on. But anyway, I think Wal-Mart does this for different reasons than Amazon. I think Wal-Mart does it just sort of to general, the way they use toys in their store. They generate excitement and pull people in or is it more of course bread and butter to Amazon's business. I don't know, do you have any comments there? Any smart thoughts?
Unidentified Analyst
(inaudible) is it are your seen it shop on your side, the media side of the business as far as an impact. So far has it been denying or has it been hurting you at all?
Patrick Byrne
Well its in such a narrow range of title yeah of course its hurting us in that range of titles but we do price below Amazon on books, movies music games everything essentially across the board. We have about a million titles, there is about 120,000 titles that mattered any given time. And they picked out 10 right in the belly up the bell curve and said they are just going to loose $5 lets say on each one of those and we are not following them there that's not our plan. But its okay we still beat them on 99.999% of the SKUs in that area.
Jonathan Johnson
I will just comment on that Brent BMVGs for the third quarter was about 3% of our revenue which was up a little bit from Q2 but down from 4% last year it's a pretty small part of our business so as Wal-Mart and Amazon and others do get out there it doesn't really have that big an effect on us.
Unidentified Analyst
Virtually meaningless in other words. Virtually not impactful. Looking at the model the margins on the fulfillment business with really decent the margins on direct we'll go a little bit later what I was looking for any thoughts on that?
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