Have you heard about the latest version of selling online music at Amazon. They have over 2 million songs for only 89 cents. Plus they do not have any DRM locks on them. Seems that Universal is the big provider of the music and appears to be an attempt to have their variable pricing they wanted from Apple. There are other labels providing music too. Amazon does not give up the right to raise the prices of songs down the road. Probably after this loss leader marketing campaign. Prices may rise to $2-$3 a song for some exclusive songs.
Sounds like they are trying an end run around Apple to get the variable pricing. Even at the price of leaving their songs unprotected with DRM. The songs will be in plain vanilla MP3 which would seem to allow you to give the song to others. Of course their may be some fine print to say you can't but it would be hard to enforce. This also would allow any music player to play the songs. Which in the end does not seem like it would hurt Apple. It may even increase demand for iPods, and they sell iPods on Amazon. It seems like Apple can't lose.
2 comments:
I'd have to agree with you, Stitch - Apple wins here also whether Universal sells music DRM free on iTunes or on Amazon. Obviously Universal wants to hook people in and then raise prices. I find that rather distasteful, but I gues business is business. I'm not so sure consumers will flock to the Amazon site to buy the $3.00 singles that Universal so desparately wants to sell. Once Universal feels they have corralled some consumers into Amazon, then they will jack up prices. It is a toss up whether consumers will blindly follow.
I think they are trying to do a total free market for pricing. Offer exclusive music for high prices and see if it flies and people buy. Some will buy but I think many more will be irritated by the moving bar for pricing. Even CD's are pretty much all priced about the same. You don't find new CD's where some go for $15 while other go for $30. Unless they might be a box set. Seems like they will be shooting themselves in the foot.
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