iTunes Still Well Ahead of Amazon MP3 Store
Reuters reports on the latest data tracking digital music downloads. Specifically, they look at Amazon's MP3 downloads after a full year of sales. According to their data, Amazon remains a distant second to iTunes:
The labels are said to be demanding more concessions from Apple as they negotiate for DRM-free music in the iTunes Store. Possibilities include variable track pricing and watermarking of individual tracks.
Major-label sources say that they had hoped the company would have fared better than it did. Amazon has yet to release any sales figures for digital music, and it did not respond to interview requests for this story. But Piper Jaffray financial analyst Gene Munster estimates that Amazon will sell 130 million tracks this year -- a paltry sum compared with the 2.4 billion songs iTunes is expected to sell in 2008.
This brings Amazon's estimate to only 8 percent of the digital music download market share without any major gains. This lack of success could influence record labels in their ongoing negotiations with Apple. Amazon MP3 offerings have been seen by music studios as a way to reduce Apple's foothold in the digital download market. Unlike Apple, Amazon has had access to DRM-free song licensing from all of the major record labels. The labels are still hoping that Amazon will gain ground over the next year.The labels are said to be demanding more concessions from Apple as they negotiate for DRM-free music in the iTunes Store. Possibilities include variable track pricing and watermarking of individual tracks.
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41 months ago
Any online music purchases I make are from Amazon. Higher quality, cheaper prices, and absolutely no DRM.
41 months ago
I love the lack of DRM in the Amazon store and the quality isn't bad.
I just don't get how the studios are allowed to operate like this. I mean what if Microsoft decided to not sell HP Windows 7 because they though they had too much market power and only Dell will be allowed to have it...
I just don't get how the studios are allowed to operate like this. I mean what if Microsoft decided to not sell HP Windows 7 because they though they had too much market power and only Dell will be allowed to have it...
41 months ago
This brings Amazon's estimate to only 8 percent of the digital music download market share with any signs of gaining.
How can Amazon be at 8% when 130 Million tracks is just 5.4% of iTunes alone?It must be more like 5%. Without any signs of gaining.
41 months ago
On the one hand I like that Amazon is all high-quality DRM-free files.
I want to see more of that.
BUT I am kind of happy they are doing poorly because it gives Apple the power to say to the labels: "Look, we're still in charge, here's what we want to do." Hopefully Apple can squash some of the sillier changes they want made to the iTunes store. (It's also great to see the labels attempt to undermine iTunes (by favoring Amazon) failing on them. You gotta love that.)
Now, if they can make iTunes 100% DRM-free (with music anyway) then I certainly wish Amazon the best and would love to see them take a large part of the market at that point.
But here and now, today, I'm kind of glad iTunes is still so powerful.
I want to see more of that.
BUT I am kind of happy they are doing poorly because it gives Apple the power to say to the labels: "Look, we're still in charge, here's what we want to do." Hopefully Apple can squash some of the sillier changes they want made to the iTunes store. (It's also great to see the labels attempt to undermine iTunes (by favoring Amazon) failing on them. You gotta love that.)
Now, if they can make iTunes 100% DRM-free (with music anyway) then I certainly wish Amazon the best and would love to see them take a large part of the market at that point.
But here and now, today, I'm kind of glad iTunes is still so powerful.
41 months ago
If Amazon has the track or album I want, I'll buy from them first for better quality, cheaper and DRM-free music.
Here's hoping this lack of market inroad makes the labels think twice about shutting iTunes out of the good stuff. If iTMS offered the same quality/price, I'd probably never look to Amazon or anyone else.
Here's hoping this lack of market inroad makes the labels think twice about shutting iTunes out of the good stuff. If iTMS offered the same quality/price, I'd probably never look to Amazon or anyone else.
41 months ago
I think Apple could stop them if they soon turn iTunes into all iTunes Plus and DRM-free.
41 months ago
This comes at absolutely NO surprise.
At the end of the day, people want ease of use and something they're familiar with. Amazon may be cheaper and better quality, but their selection just isn't as good, and it's just a bigger hassle than getting stuff on iTunes.
Hopefully this gives Apple the leverage to demand DRM-free music from ALL the studios, and higher bitrate. I don't think Apple's going to ever get lower than 99 cents per track, but I'm fine with that.
At the end of the day, people want ease of use and something they're familiar with. Amazon may be cheaper and better quality, but their selection just isn't as good, and it's just a bigger hassle than getting stuff on iTunes.
Hopefully this gives Apple the leverage to demand DRM-free music from ALL the studios, and higher bitrate. I don't think Apple's going to ever get lower than 99 cents per track, but I'm fine with that.
41 months ago
Second that.
But will the average user be bothered with the DRM, he might just think since it's from apple he'll get it from apple, though the DRM does bother me and I favor Amazon here:apple:
But will the average user be bothered with the DRM, he might just think since it's from apple he'll get it from apple, though the DRM does bother me and I favor Amazon here:apple:
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