Amazon to Compete With iTunes!
Amazon is in talks with various major record labels regarding a music service they plan on offering. Also, Amazon is looking to partner with a hardware manufacturer to offer a flash-based music player that they will brand with the Amazon logo. All this is an effort to directly compete with the Apple iTunes Music Store, and, of course the iPod. An article at Red Herring, suggests how Amazon may try to compete by offering up something different than Apple and the other current services:
The company may offer players that come preloaded with songs based on the customer’s CD-buying habits.
Amazon may also offer a subscription-based music service and either give away the player or offer it for a cheap price on the condition that the customer subscribe to the service for a given length of time.
The cost of the music service subscription would subsidize the price of the player, similar to the way many wireless carriers give away cell phones for free in exchange for year-long contracts.
Amazon could also provide extra discounts on CD sales to customers of its music service to avoid cannibalizing its own CD sales too much with the service.
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Shouldn’t the title be: ‘Amazon to Compete with iTunes!’.
Shouldn’t the title be: ‘Amazon to Compete with iTunes!’.