Online music retailer CD Wow! is teaming up with distributor Loudeye to offer legal music downloads. The main difference between this announcement and the announcement of the numerous other stores around is that CD Wow! has a reputation for selling cheap music CDs. Therefore CD Wow! may have to lower their download prices quite a bit to make them look attractive to consumers because their customers would feel a price any higher would be more expensive.
Obviously cheaper downloads would be an inconvenience at least for Apple but they have not a lot to worry about. CD Wow!'s downloads will not be compatible with an iPod. However it might create a problem for other stores who sell music in the Windows Media Audio format. CD Wow! has always had a large consumer base due to their low cost CDs, DVDs and Games. Now we will just have to wait and see if they can create the same stir in the download market.
Source:
The Register
Source:
The Register
