Mark September 25 on your calendar. We may very well may celebrate it
as the beginning of the end of our national nightmare under the oppressive
bondage of the iTunes Music Store.
As
I've said before, Amazon is the only player in the game with a real chance
at denting Apple's dominance. It already has massive amounts of visitors, many
of whom are already shopping for music anyway. It offers high-quality music
(256 Kbit/s) at reasonable and, more importantly, variable prices. Albums range
from $5.99 to $9.99, with the most popular albums all selling for $8.99. Single
tracks are $0.89 or $0.99, but the top 100 tracks at any given time are all $0.89.
And, as promised, the Amazon MP3 Store has no DRM. A side note: All debates
about DRM's positive and negative effects aside, the freedom from the
iPod-specific FairPlay DRM on which Apple insisted will put more purchased
music on more types of MP3 players, many of which Amazon also sells.
These dudes are smart!
(An additional jab to Apple: Amazon's
press release features a positive quote from KT Tunstall who recently played live
at the launch of Apple's new line of iPods. Zing!)
The store itself requires a quick download of the Amazon MP3 Downloader
application, but that's standard operating procedure for a number of similar
stores. And when the files were finished, the app opened iTunes for me. (I'm
now listening to the Hold Steady's Boys
and Girls n America,
a fine album which I hadn't actually paid for.)
Of course, we won't really know the effect of the Amazon MP3 Store on the
market for a few months, but this all looks pretty good so far.
Anybody else out there using it? Thoughts? Problems? Let us know in the
comments.
It all sounds great for the end user, but I fail to see how they plan to make money off of this thing. While it's great to be disruptive and everything, it doesn't seem like there's a great business payoff for Amazon.
Apple has ridiculously thin margins on the content distribution side of its business, but it makes up for it by selling the hardware at a profit. Amazon is taking those already thin margins, slicing them thinner, and only making an incremental profit on whatever MP3 players they sell.
And since iPods remain the gold standard and probably will remain so for the forseeable future, I just don't see this making a lot of money for Amazon in the long run or even disrupting the Apple business plan, since it doesn't make its money off downloads anyway.
If you found this interesting or useful, please use the links to the services below to share it with other readers. You will need a free account with each service to share an item via that service.
To save this item to your list of favorite Contentinople content so you can find it later in your Profile page, click the "Save It" button next to the item.