Every time an MP3 producer launches a new player, or a
website announces a new online music store, the comparison with the famous
iPod-iTunes duo is almost inevitable. As for this unwritten rule, same goes for
the newly arrived Amazon MP3, the latest initiative of the famous online
retailer.
As you might know already Amazon MP3 is offering some 2 million
songs without any copy protection or software restrictions on how the music can
be played. The new store features 180,000 artists and 20,000 record labels with
songs priced from 89 to 99 cents and albums from 6 to 10 dollars.
Amazon MP3 is base mainly on music catalogues provided by
EMI and Universal Music Group.
EMI has started to offer its music as DRM-free tracks
earlier this year, few weeks after Steve Jobs has posted on Apple’s website its
famous open-letter “Thoughts on Music”. In fact Steve Jobs joined EMI officials
in April in the press conference in which they announced the release of DRM-free
tracks
Universal Music Group joined EMI in DRM-free revolution in
August. UMG is holding approximately 30% of the world’s music market, with
one-in-three tracks being released under its umbrella.
The other two major record companies, Warner Music Group and
Sony BMG Music Entertainment, have said they will not sell music without the
protections because of the concern that music will be illegally copied and
distributed for free.
But let’s go back to Amazon MP3. Almost 90% of the articles
in which the Amazon MP3 is mentioned bear a comparison with the iTune, be it
from a price policy or number of items in the catalog point of view.
The comparisons are well justified seeing how iTunes is
currently the world leader on the online music market and that in fact holds a share
in the market that’s almost impossible to catch up with. According to research
group NPD iTunes controls 70 per cent of the market for authorized downloads
and has sold more than 3 billion songs since its April 2003 debut. The service
offers more than 5 million songs, 550 TV shows and 500 movie.
Amazon.com is also a music giant. It has 69 million active
customers and is the No. 4 retailer of music in the nation, according to
research firm NPD Group.
But the one thing that seems to be missing from all these
comparisons, Amazon MP3 versus Apple’s iTunes is the fact that the two rivals somehow
fundamentally different.
From the beginning the online music store belonging to Apple
had and has one goal in mind and that is to provide iPod possessors with their
favorite music.
As it did in previous cases, Apple ended up creating two
different products, strongly interdependent, of which success depends on one
another. Out of all the stores that offer similar services to those of the
iTunes, none include an MP3 player in the package.
That is why I do not think you can say there is a real
competition between the Amazon MP3 and the iTunes.
The Amazons MP3 success or lack of success should only be
reported to that of similar initiatives like Yahoo Music, Napster or Real
Networks and not to iTunes.
Fact of the mater is that Amazon is indeed a famous retailer
and obviously with the purchase of one of its MP3 players the customer could
choose from a variety of music catalogues.
The problem though is the fact, that unlike Apple that owns
the iPod, Amazon does not own its players and thus could make it difficult for
the company to promote an MP3 player through music or the other way around.
Indeed, unlike other music stores, the MP3s from Amazon MP3
are playable on iPod and iPhone, but it’s hard to believe that the retailer’s store
will manage to lure away too many iTunes’ customers.
In conclusion, the presence of a store which sells DRM-free
music of the Amazons stature is welcomed especially by those who aren’t already
iTunes customers.
Still its numbers of tracks are still too low to pose a real
threat to iTunes, and it will probably repeat the evolution of the other service
provided by Amazon, Amazon Unbox.
In other words in the absence of a competitor able to equal
the Apple (iPod+iTunes) combo, when it comes to the digital download market one
can only talk about Apple on one hand and
the rest of the providers, on the other hand, kind of Apple versus the rest of
the world.
On the other hand, Microsoft with its famous Zune player has
demonstrated that even with a very similar offer to that of the iTunes, it is
still difficult to fight for supremacy.