News

Amazon May Take On iTunes, iPod

Thursday, February 16th, 2006 at 8:15 AM - by Staff

Online retailer Amazon may be preparing to take on the iTunes Music Store and iPod. According to The Wall Street Journal, Amazon is negotiating with four global music companies to help it develop a digital subscription music service that will set it apart from the other online music providers, but more importantly, will set it apart from the iTunes Music Store (iTMS).

Amazon is also looking to sell its own digital music player line composed of products it designs. The players would likely come preloaded with music at a deep discount, in essence copying the mobile phone industry's tactic of selling phones at a discount as a part of the service package.

The music service could launch as early as this summer, and include music from Universal Music Group, Sony BMG, Warner Music Group Corp., and EMI.

To date, the only company that's been successful at selling its own music player and service is Apple, and it is the only company offering a music purchase and download system instead of a monthly subscription-based service. It's also the only MP3 player manufacturer to have strong long-term success with its players.

Since January, Dell and Sony have both dropped some of their MP3 players because of Apple's dominance in the market. Although Amazon is the dominant online retailer, it's unclear if it can go head-to-head with Apple's dominance in the digital music market, especially since it is adopting the less popular subscription service model.

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PerfectIrony said:

member since 01 Apr 2005 with 41 posts, unranked, send him a message or view his profile

Thu Feb 16, 2006 11:06 am

Isn't it obvious to the other companies out there that Apple's success with the iPod/iTunes model is that it is **NOT** subscription?

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fultonkbd said:

member since 02 Mar 2004 with 121 posts, unranked, send him a message or view his profile

Thu Feb 16, 2006 11:08 am

The subscription service model just doesn't work for me. And it seems that most agree, if you look at the market. I wonder why they would choose this model over pay-per-song?

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A guest said: (hide)

Thu Feb 16, 2006 11:30 am

What I've never understood is why Apple doesn't offer a subscription service as an option. Maybe it's just a DRM issue, where the changes to the protected AAC format, and potentially the iPod software, would be too much of a hassle? I doubt it though - I think Apple has the technological savvy to get it done if they want to. And I wish they would; I'd love, for instance, to pay $15 a month and be able to listen to anything in the iTunes music store . . . and be able to download & keep a song for every dollar spent, if I cancel the subscription. Everybody wins - Apple gets the steady revenue stream of knowing I'll "buy" at least $15 of music a month, and I get to explore the entire catalog, and more easily find new music.

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A guest said: (hide)

Thu Feb 16, 2006 12:46 pm

Quote
Guest wrote:
What I've never understood is why Apple doesn't offer a subscription service as an option. Maybe it's just a DRM issue, where the changes to the protected AAC format, and potentially the iPod software, would be too much of a hassle? I doubt it though - I think Apple has the technological savvy to get it done if they want to. And I wish they would; I'd love, for instance, to pay $15 a month and be able to listen to anything in the iTunes music store . . . and be able to download & keep a song for every dollar spent, if I cancel the subscription. Everybody wins - Apple gets the steady revenue stream of knowing I'll "buy" at least $15 of music a month, and I get to explore the entire catalog, and more easily find new music.

They don't offer it as an option because really, not a lot of people want it as an option. Sure thousands. BFD. Downloads continue to grow exponentially. Could things really be doing better?

Making a huge investment in MP3 players an a download service now is a waste of shareholder money in my opinion. Apple owns the market. Millions of people with iPods have nearly a billion protected AAC tracks. Alternatives to iTunes will go the way of the betamax. Eventually, Apple will saturate the MP3 player market, at that point they will license AAC. Just as Apple will likely eventually license OSX at some point, probably 5-8 years. They already do not manufacture their own hardware. . .

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A guest said: (hide)

Thu Feb 16, 2006 1:00 pm

I would love it if Apple offered a subscription service. I think the reason it hasn't worked for other digital download companies is because ipod/itunes has nearly 80% of the market. I only buy songs from itunes when I first purchase a new ipod, but normally I get all my new music from Target, so that I have the CD case, can play it in the car, etc. However, if Apple had a subscription service, I think I'd visit itunes on a daily basis.

In the mean time, I've been using Griffen's ifill software to record internet radio station's to my ipod. This service makes buying music almost unesscary.

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fultonkbd said:

member since 02 Mar 2004 with 121 posts, unranked, send him a message or view his profile

Thu Feb 16, 2006 1:17 pm

Quote
Guest wrote:
... And I wish they would; I'd love, for instance, to pay $15 a month and be able to listen to anything in the iTunes music store . . . and be able to download & keep a song for every dollar spent, if I cancel the subscription. ...

That is a better subscription model. It's still not one I would buy into but am sure would appeal to a wider audience. I'm not sure if Amazon.com's model will be like that. If it is, I could see it gaining some traction. I'm not saying a iPod/iTunes killer, but could carve a niche in the market.

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metavurt said:

member since 16 Jun 2003 with 163 posts, unranked, send him a message or view his profile

Thu Feb 16, 2006 1:49 pm

Subscription and buying models are like renting/owning apartments/homes. Renting floats you month to month, but buying, that's an investment. Something you keep.

You get what you pay for. What do I get with a subscription? Temporary relief. What do I get when I buy? As long as I keep the music, I've got relief now, and for years down the road. I still have CDs I bought over 15 years ago. They have now all been saved to a hard drive, but if I ever need to re-import, I can.

You can't do that with *any* subscription model, I don't care how pretty you dress it up.

And let me make a clarification: when I find new music that I like via the Apple Store, I dig around either at Amazon or *gasp!* at a music/book/2nd hand store and buy the CD. I ABSOLUTELY HATE DRM.

I have, however, spent gift cards and around $200 total at the Apple Store - and then stripped out the DRM.

No - I only share my music when i make a mix CD for people that aren't as crazy about music as I am!

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A guest said: (hide)

Fri Feb 17, 2006 5:07 am

[Troll spoor removed by Intruder.]

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A guest said: (hide)

Sun Feb 19, 2006 12:50 pm

Quote
Guest wrote:
Quote
metavurt wrote:

You get what you pay for. What do I get with Hyland's gas tablets? Temporary relief. What do I get when I buy a lifetime supply? As long as I keep taking them regularly, I've got relief now, and for years down the road.

Stupid.

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A guest said: (hide)

Sun Feb 19, 2006 12:53 pm

Quote
Guest wrote:
What I've never understood is why Apple doesn't offer a subscription service as an option. Maybe it's just a DRM issue, where the changes to the protected AAC format, and potentially the iPod software, would be too much of a hassle? I doubt it though - I think Apple has the technological savvy to get it done if they want to. And I wish they would; I'd love, for instance, to pay $15 a month and be able to listen to anything in the iTunes music store . . . and be able to download & keep a song for every dollar spent, if I cancel the subscription. Everybody wins - Apple gets the steady revenue stream of knowing I'll "buy" at least $15 of music a month, and I get to explore the entire catalog, and more easily find new music.

I'd be very interested in something like that. And contrary to what another poster asserted, I'm sure I'm far from alone in that.

There's nothing wrong with iTMS covering all bases. If Apple offers a strong subscription service alongside their standard buck-a-song service, then the competition has no wedge to drive. And iTMS remains dominant for the forseeable future. What's not to like, if you're Apple?

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A guest said: (hide)

Sun Feb 19, 2006 2:12 pm

subscriptions rock. I used to have a relatively handful of songs on an iPod, but then I sold it and got a player that works with Napster to Go!

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Intruder said:

member since 07 Jul 2004 with 2840 posts, TMO Mac Specialist, send him a message or view his profile

Sun Feb 19, 2006 2:18 pm

Good for you, Jigsaw.

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A guest said: (hide)

Sun Feb 19, 2006 2:21 pm

troll droppings deleted by Intruder.

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