Amazon's MP3s not affecting iTunes
Amazon.com's MP3 site
(Credit: Amazon)Amazon.com's MP3 service is growing but not at the expense of Apple's iTunes, according to a report issued Tuesday by market researcher NPD Group.
Only about 10 percent of the people who shopped at AmazonMP3 in February were previous Apple shoppers, NPD said.
This is a "healthy indication that the digital music customer pool can expand into new consumer groups who have not yet joined the iTunes community," Russ Crupnick, entertainment industry analyst for NPD said in a statement.
Apple's iTunes remains the No.1 digital music store. AmazonMP3, which launched in September, slipped past Wal-Mart to take over the No. 2 spot in February when comparing the individual music tracks downloaded by consumers in the U.S., according to NPD.
The big question now is whether Amazon can continue to grow without snatching away customers from Apple.
Amazon may be enticing its existing customers to the music store, Crupnick noted. He said that a Superbowl promotion that Amazon held in February may have drawn regular shoppers to check out the new music service. He also speculated that many music fans are visiting out of curiosity.
"We'll have to wait to see what Amazon can do with those people," Crupnick said. "Does the traffic snowball or does it wane?"
Amazon has at least one major advantage over Apple: Apple's DRM-free tracks are available only from EMI Music, while Amazon offers unprotected MP3s from all four of the major record labels. Also, Amazon sells digital music at a higher bit rate and its songs are often cheaper.
But Amazon has a long way to go, says NPD. MP3 sales at iTunes are more than 10 times larger than at Amazon, the research firm said.
Greg Sandoval covers media and digital entertainment for CNET News. He is a former reporter for The Washington Post and the Los Angeles Times. E-mail Greg, or follow him on Twitter at http://twitter.com/sandoCNET. 
1. Often has albums that are complete when itunes for some reason is missing sometimes 2-3 tracks.
2. All tracks are DRM free, have embedded artwork, and are good quality.
3. Songs are automatically added to your iTunes library, the amazonMP3 folder even puts itself in your itunes music folder.
4. Did I mention they are DRM free?
I have purchased quite a bit on amazonMP3 after looking at the content on itunes and then just checking amazon and often finding it is $1-2 cheaper. I recommend any itunes user to give it a try.
But it's a moot point to me until Amazon decides to roll the service out to their international sites. I can't understand why they don't, there are no technical barriers, but maybe some legal ones. Until then, it's nothing more than zuneware... I might consider it, if they let me.
Anyways, I'm not hopeful, Amazon.ca doesn't have anywhere near the kind of product selection of Amazon.com. It's almost as if they think a bookseller should focus on selling books! pshaw!
Of course no DRM is a big deal. I can play the music on ANYTHING, iPods, XBOX, PS3, TiVo. And there is none of that computer authorization crap. Amazon stuff is cheaper, higher bit rate, it has all the album artwork, and their downloading app throws the stuff right into my iTunes library. It's easy.
So the study is saying that Amazon is not displacing iTunes customers, but I am one.
shows, etc... I can track all my purchases on the site, use
iTunes to look for music (Amazon has that too, but it's pretty
weak in comparison.)
And the price is the same. I don't mind typing a password once
in awhile. There is no way I have to do that with iTunes more
than once a month, if that much. But if you run Windows, you
probably restart all the time, etc... so I'm sure, like a lot of
things, it's a huge hassle when you are running Windows.
are still initially signing up with the iTunes/iPod model is the
reputation? Yeah, Amazon has been out there for a while, but
it's never had any buzz, and the offerrings still aren't
comparable.
I'll admit it, I am part of that universe, but I signed on back in
2000, and got an iPod in 2001 (when most people still didn't
understand what an MP3 player really was). I've tried out a few of
Amazon's listings, but I still prefer the iTMS. When I release an
album via TuneCore, Amazon's going to have to sell more songs
in particular genres before I spend the extra fees to post it there
too.
How often is it that you see a link for a song on a social
networking or news page to the Amazon Music Store? I've yet to
see one...
iTunes sells 10 times as much ? Yes , and Amazon JUST GOT OUT OF Beta !!! iTunes has many years of lead time and Amazon is already kicking a** and taking numbers. Amazon offers better quality , lower cost , and support from ALL FOUR majors DRM free. No wonder iTunes days are numbered. Millions of others like me refused to buy into the locked-down Apple walled garden. Thank God for AmazonMP3 !!!
When the Amazon digital sales stories broke a month or two
ago, they all made it sound like Amazon was right on Apple's
heels. I guess so if they are #2, but now we find they are only
selling 1/10th of what Apple sells.
Why is it that 1/10th use Macs and are ignored, but 1/10 buy
from Amazon and this is supposed to be some big deal? As if
some service hasn't been doing this far better for what, 7 years
already.
Amazon is just for a sort of GENERIC music buying experience.
Sort of like Windows is a GENERIC computing experience.
"MP3 sales at iTunes are more than 10 times larger than at Amazon"
So, you felt obligated to compare size on a 6 month old venture to size on one that's 6'ish years old now (with it's own embedded monopoly based on hardware sales?)
yet another *fine example of journalism* from Cnet.....
If iTunes has a bazillion sales based on their monopolistic system(with a 6 yr headstart) , and Amazon acheived 10 percent of a bazillion in 6 months is just amazing ! Word on the street is that iTunes is a rip-off.
an audio player. You have to manage everything yourself, while
iTunes does a beautiful job of all this. iTunes is the best
software of it's type ever, and it's free, so you can use that with
Amazon if you want, no problem, but Amazon files don't
download directly into iTunes, so that's a pain to me.
iTunes is the original online music store, and Apple was the one
to call for DRM free tracks from the start, and had them before
Amazon. Apple is the innovator here, Amazon is more like a
digital WalMart.
This all plays into Apple's hands entirely so I really doubt they
are concerned about Amazon. I personally think Apple is
probably happy to see that both #1 and #2 are digital sales,
with CD sales being pushed to third place. DRM free is what
Apple wanted for the iPod all along, but the labels would not
allow it. Other players, such as some of the Sony/Microsoft
players, would ONLY play Sony's proprietary format or
Microsoft's proprietary format, and were completely closed to
documented, open formats such as MP3 or AAC or AIFF. Apple
was open to all the formats except the proprietary, closed
formats of Microsoft and Sony from the very start.
iPods works GREAT with pretty much any music files, except the
Microsoft formats (plays for sure???) which don't work anywhere
now that Microsoft abandoned it (for sure) along with all their
hardware 'partners'.
The best part? A whole lot of the iPod users are buying Macs
now.
http://www.pricepicture.com tracks music CDs on the Amazon Marketplace and has a free Music Bargains Report that is updated daily.
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- by iceman721 December 14, 2008 8:13 PM PST
- I am a defector from Itunes to Amazon. Amazon's music is at a higher bit rate 256kbps vs. 128kbps. Amazon downloads are in MP3 vs. AAC so even though I can convert them to MP3 with Amazon I don't have to. I have began having all my new music inserted into Windows Media Player. I'm getting rid of my Ipod and purchasing a Zune. My Ipod has a smaller screen and is 30gb. I plan on getting rid of it to purchase either an 80gb or 120gb Zune.
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(27 Comments)No more DRM music for me. No more low bit rate crappy sounding Itunes downloads. Amazon should make an agreement to put Netflix, Hulu or Joost content on Zune or other portable devices. The only thing I see lacking vs. Itunes is the video content. I still have the option of pulling out my laptop if I want to watch a video or I can rip a standard DVD and place it on my Zune when I pick it up.
Itunes is popular but it is NOT better. More people will see that in time and move on just as I did.