Amazon to Launch Digital Music Store in September, Push Variable Pricing

Written by A. L. Friedman

Friday, August 31. 2007 at 11:29 AM EDT Post a comment

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Almost five months after it announced its intentions, the Amazon digital music store will finally launch in mid-September. As well as offering DRM-free music from EMI and Universal, the store will also vary its prices according to the popularity of the artist.

The September 17th date is tentative, as the launch has apparently been pushed back several times. But given that Amazon was tapped for Universal's six-month trial period selling DRM-free music, any delays will probably be minor.

Amazon will sell more popular tracks for $0.99, while older titles and tracks from emerging artists will cost $0.89. Albums will go for between $7.99 and $9.99. This is a significant departure from the flat $0.99/$9.99 pricing at iTunes. Wal-Mart's music store undercuts Apple as well, but its insistence on selling edited music pretty much renders them irrelevant.

But besides the lower prices, Amazon's established place in the world of internet commerce gives it an edge. As opposed to the myriad digital music storefronts, millions of users already shop at Amazon.com. The addition of a new feature is easier than the launch of a new brand and a new site.