Gentlemen, let me be the first to ask the obvious - will the rumored Amazon music download service be the first to provide competition for the iTunes music store? Amazon is quite a savvy online marketer, and as one of their customers, I think they provide excellent service.
I can't help but wonder: can Amazon link up with a good enough digital music player to challenge the iPod+iTunes juggernaut?
6 comments:
I would have to agree that Amazon has, to date, the greatest potential for giving iTunes some bona fide competition.
-Le
I think Amazon and any other competitor in the music download business is in a serious connundrum. In order to download music legally you need a DRM (digital rights management). The iPod only supports Apples DRM but will play non DRM music as regular MP3s or AAC's. Apple is not going to license its DRM to Amazon. So they are forced to use either Real's or Microsofts. The problem is if they offer music with MS DRM then everyone with an iPod currently cannot play this music. There has to be a reason all of these people will dump the Apple standard and their iPod and switch to a MS standard music player. But as far as I can tell most people are very satisfied with the iPod and iTunes. I don't see how Amazon can get a leg up. They would need a leap in technology and catch Apple sleeping at the wheel. Not likely. It's the same problem Apple has with selling their computers against MS. The Apple could be far more advanced but very people would jump ship off of the Windows standard because of all of the available support and software (Even though a lot of it is crap). Apple is starting to show Windows users a compelling alternative. Does an Apple do everything you want a PC to do and better. With iLife software and the elegance of OSX for a lot of people are realizing that yes it can. Bottom line is Apple is the big guy on the block and most users are very happy with the service. They are so big they can command lower prices for components for their iPods and therefore offer more for your money. It is going to be tough to dethrown such a solid position. At least with MS and PC's, a lot of people are not happy with what MS offers but feels trapped because of compatability. This is a situation just asking to change.
Very well said, Stitch! Indeed, one could say that Amazon would have to carve out an entirely new niche of consumer - one that isn't a part of the iPod+iTunes world. In other words, they would have to literally expand the market for digital music dramatically to make an impact. While they could market to their considerable fan base, the iPod is still available on their web site as well as an alternative.
I just don't think Samsung is up to the task of making a hot MP3 player that rivals the iPod. Heck, even Sony is failing miserably. Note the impending termination of their Walkman "Bean" player!
Agree with Stitch, if Amazon music only plays on an Amazon player, not to mention all the music that someone might have already collected, that would pose serious restrictions to the user. On the otherhand, I hope that Apple might learn a few things from Amazon, I would like to see a "wish list" added to iTunes MS. And reccomendations would be another nice feature that might make the music store easier to navigate. No doubt Amazon will capitalize on their current strengths. Hey, I like them both but as already mentioned, there would need to be a very compelling reason to change one's music download habits. Amazon will have to drop some serious cash, advertising etc to make this work, otherwise they could go the way of Napster and eMusic. We haven't even discussed the new video, phone and TV debates. Apple is well ahead of the curve on all fronts, they were thinking about the digital/entertainment hub 5 or 6 years ago. They now have the products, software and recognition worldwide to pull it off and make money.
I must note that I am an Amazon fan myself. They are all about customer service. But just because you are successful in one are does not guarentee success in everything you do. Google has been hailed as if they can do no wrong. But they have had little success in any other products but their search engine. Google Earth is cool but where are the profits for this?
If music downloads were all about quick response and responding to customers and Apple was turning a deaf ear then yes Amazon has a big opportunity. I really don't see why everyone is trying to get into the music distribution business anyway. Jobs has commented that the money is in the iPod not iTunes. Most of that money goes to the music companies. Maybe Amazon plans to market its own music player. But what experience do they have with making a product. Maybe they have teamed up with some big name companies. Possibly Dell, MS, and maybe Intel. Dell found they couldn't do it on their own. MS keeps hinting on making a player of their own. They were successful with the X-box. Probably because they had heaps of money to throw at it.
I think the biggest advantages Apple has with the iPod is that they did not try to lock out regular CD's from being loaded into the iPod. The didn't get gready and want all music to be from iTunes. I think this keeps them on top. All the other DRM formats are saying is, "Wait a minute, we wanted to be the top DRM format." But besides that, they have basically copied the iTunes model. Except for Napster who have that subscription model. Of course analyst are saying if that becomes popular, Apple will just offer the same thing. It's as if Apple is the Microsoft of music. Except they don't have so much of the "take no prisoners" approach. But you are pretty much stuck with what they have to offer. Thank goodness its pretty good.
I have to agree that iTunes is not perfect. Many artists don't want to sell their music by song but rather a complete album. Why are all song's the same price? Shouldn't there be a bargin bin for stuff that is so old you are only curious about listening to it. I hope the video becomes cheaper for the daily programming. It should become as cheap as having a dish or cable in my opinion.
Apple keep up the good work and don't forget to listen to the customers and you will continue to be profitable.
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