Amazon MP3 Will Pose Strong Challenge to Apple iTunes?

The internet’s most successful seller of physical CD, Amazon.com, has unveiled an early beta version of its Amazon MP3. This highly anticipated digital music download store allows users to purchase music without copy protection technology. The price ranges from 89 to 99 cents per song or $5.99 to $9.99 per album. Under this arrangement, users can play the purchased songs on a variety of gadgets such as Apple’s iPod. Although not free, song lovers can get their favourite songs - for a song.

Considering the market position of Amazon as one of the most popular digital music sellers online, this new Amazon MP3 service rendered by Amazon will inevitably pose a strong challenge to Apple’s iTunes Service. The success story of iTunes who has captured more than 70% market share of digital music sales has attracted many web companies to enter into the same business. However, many have failed as they get caught up in negotiations with the music companies.

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This entry was posted on Wednesday, September 26th, 2007 at 11:27 pm and is filed under Internet Services. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.