Amazon Planning To Challenge Apple's iPod/iTunes Dominance
from the here-comes-the-counter-attack dept
It's no secret that the big record labels have desperately been looking to back a company that can effectively compete against Apple's iTunes/iPod juggernaut. While they were happy with the original success of iTunes, and its ability to basically create the digital download music marketplace from scratch, Steve Jobs became too powerful for their liking when he wouldn't agree to let them raise prices or give them a cut of iPod sales (a device they originally hated and wanted stopped). At some point, the record labels recognized that Apple had way too much power -- and it was partly their own fault for insisting on a copy protection solution that gave Apple lock-in.However, it looks like the record labels have found a new horse to back. The Wall Street Journal is reporting that Amazon.com is close to completing deals with the major record labels to offer a competitive offering -- both in digital downloads and in hardware. That's right, Amazon will be offering its own digital music player, branded by Amazon, but built by a third party OEM (possibly Samsung). That may upset other music device makers, who will find themselves competing against Amazon on Amazon's own site. Still, the idea of digital downloads fits with another recent story about Amazon's movie download plans -- though there are some interesting additional details in the WSJ piece. Apparently, Amazon would heavily subsidize the music player, giving it a leg up on Apple's pricey iPods. This actually seems a bit strange, since Apple has admitted that it uses the music as a loss leader to sell more iPods. In other words, it's losing money by selling music, but making it up on the iPod hardware. However, in this case, Amazon would offer subscription pricing, rather than per-download, which many believe is much more profitable. Even more interesting, though, is that Amazon's subscription offering would allow them to offer the music player pre-loaded with songs. For years, people have said that Apple should be doing the same thing, but other than a few experiments with music acts like U2 and Madonna, most iPods come pretty much empty. There are still plenty of questions (such as how drastic the copy protection will be, how much the subscription fees are and how appealing the music players are). Plenty of companies have tried to take on Apple's iTunes/iPod dominance in the past -- and they've all pretty much failed (often miserably). Amazon, at least, is trying something different -- but that doesn't mean it will succeed.
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And now for something completely different
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Re: And now for something completely different
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Won't work because the RIAA is still clueless
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Another company misses the point
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No Wait... No Wait... ok... ok... This is it... re
No wait... The RIAA backs Creative to over throw the iPod
No wait... The RIAA backs Real Networks to unseat the iTunes Music Store
Ok... This it it.... Really... The RIAA backs Microsoft... yea thats it... If there is one company that can take down Apple it is Microsoft...
Now it is Amazon.com.
Next month it will be somebody else.
And what is the big deal?
Apple maybe the only company making money from downloading music but they are not number one. In retail music sales they are number 7. Why doesn't the RIAA go after the juggernaut of Wal-Mart or Best Buy?
Why is the RIAA, Microsoft and 150 (yes that is the actual number) legal download music services scared of Apple? Why doesn't the RIAA deal with Apple and reap the rewards and not fight them and loose.
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Re: No Wait... No Wait... ok... ok... This is it..
Please get it straight people loose is the opposite of tight, lose is the opposite of win.
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No Subject Given
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umm hello?
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How is this different?
Good luck with this Amazon your going to need it.
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How about...
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Re: How about...
No DRM, high-bitrate mp3s. It's a subscription service, but works out to be cheaper than itunes.
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Re: How about...
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Innovation vs. Panic
I'm gonna go out on a limb and applaud Amazon. At least they're trying. Maybe they've (finally) realised that CDs are likely to be overtaken by MP3 and are trying to put into place a plan to take that into account. Who knows, you might see them implementing an extension of their recommendations system where they offer discount on the CDs when you buy a certain no. of mp3s etc.
Let's give them time to show us they really don't understand the business before assuming it!
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Nobody's going to topple Apple any time soon
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Re: Nobody's going to topple Apple any time soon
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Re: Nobody's going to topple Apple any time soon
When you've got major auto manufacturers putting in ipod interfaces into their cars, you know you're top dog...
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Fight RIAA
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No Subject Given
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introduction
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