Andre Yoskowitz
16 May 2007 13:06
Today, Amazon confirmed the long running rumor that it was starting a music download store to compete with Apple's iTunes. Amazon's new service will however be different than all its competitors and will only sell songs DRM-free.
Amazon said the new service will offer million of tracks from 12,000 record labels including EMI.
"Our MP3-only strategy means all the music that customers buy on Amazon is always DRM-free and plays on any device," said Amazon CEO Jeff Bezos. "We're excited to have EMI joining us in this effort and look forward to offering our customers MP3s from amazing artists like Coldplay, Norah Jones and Joss Stone."
With Amazon putting weight behind the DRM-free movement it could persuade other major labels to follow in EMI's footsteps. Universal and Warner have already admitted they are testing unprotected music, but are afraid of piracy that can come about after the tracks are purchased.
Amazon has also chosen MP3 as the format of the tracks it is selling, which means music purchased at the Amazon store will be compatible with almost all digital media players. iTunes sells its tracks in Apple's AAC format which is only really compatible with the iPod and a few other players.
Some analysts still feel that with all those pros, it will not be enough to pose a serious challenge to the market share leader iTunes.
"If Amazon can offer a greater catalog than Apple at a lower price point or higher quality bit rates, we might begin to see iPod users begin to use the Amazon offering over iTunes but unless there's a marked differentiation, it's not likely that iPod users would go to Amazon over iTunes, especially given the iTunes eco system of music, TV shows, movies and games," remarked Jupiter Research vice president Michael Gartenberg.
Amazon did not state a specific date for the launch of its store but noted that it would be later this year.
Source:
BetaNews