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Amazon launches early version of Web music service

RnMTeam by RnMTeam
September 26, 2007
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Mumbai : Amazon.com Inc has launched an early version of its expected digital music download store. Its potential rival is said to be Apple Inc`s dominant iTunes service.The “Amazon MP3” store allows users to buy music without copy protection technology, so the songs can play on a variety of devices, including Apple`s market-leading iPod. Amazon has priced most of its songs from 89 cents to 99 cents each, with more than half of the 2 million songs priced at 89 cents, the online retailer said in a statement.

Amazon had been expected to launch its iTunes rival since a long time, especially after signing deals with Universal Music Group, part of French media giant Vivendi, and EMI says a Reuters report.Amazon believes selling music without protection will attract consumers who have been hesitant to buy songs that are digitally formatted as they are restricted where they can be played or transmitted. That is the case with iTunes, where most song downloads are usually only playable with an Apple iPod player. Many Web companies and start-ups have proposed business models to take on iTunes, which has a 70 percent market share of digital music sales. Many have also failed as they get caught up in negotiations with the music companies. Amazon is one of the largest US retailers of music through CD sales, but says it is not concerned that digital music will cannibalize sales of CDs.But analyst David Card of Jupiter Research said Amazon`s entry to the market could offer real competition to iTunes and boost digital music in general.

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