Only Apple and its ubiquitous iPod have managed to capture enough consumer attention and share of mind to legally sell music online. The service has many competitors, but none are close in size to the technology company. Even The Beatles eventually came around to the little iPod rectangle and its iTunes store.
Today, Amazon is the latest entrant into the music download business, and many analysts believe the leading web retailer is one of the few companies poised to give Apple a run for its money. The new service is called Amazon MP3, and what it lacks in scope (2 major music companies are still holdouts), the service makes up for in marketing muscle, reach and consumer presence.
"Amazon presents consumers with the choice they've waited for," said George Bounacos of Consumer Help Web. "By creating a service that also works on iPod, Amazon has already changed the marketplace by offering similar titles at 89 cents instead of iTunes' minimum of 99 cents." The difference is important, Bounacos said, because Apple's iTunes store has sold several billion songs worldwide. "Consumers might think that a dime isn't important, but several billion dimes is," he said.
Amazon's MP3 service is also getting positive reviews from early adopters. "A real alternative to iTunes," wrote Michael Arrington of leading technology blog TechCrunch. Armstrong's review of the new service praised the music's quality and mentioned support for multiple systems, including Linux. Arrington also noted that the best-selling albums were priced low: no more than $8.99 each.
"That's what happens in a competitive marketplace," Bounacos said. "Consumers benefit because suddenly the average price isn't 99 cents, but somewhere in between. Competition is always a plus for consumers. The marketplace will now be able to decide the appropriate price, rather than the company with first mover advantage."
Labels: Amazon, Apple, iTunes, MP3, music
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