Amazon Looks to Take Bite Out of Apple’s Music Biz
By George Anderson
Looks like everyone is trying to take a bite out of Apple Computer’s market share in the downloadable music category, and the latest to step up and take aim at Steve Jobs and company is Amazon.com.
The New York Times reports that Amazon plans to offer a download service that will charge consumers a monthly subscription fee, rather than a per song charge as Apple does.
Amazon also intends to sell its own portable music player to compete head-on with the iPod.
Others have tried this approach in the past with less than spectacular success, but Amazon believes it can avoid the pitfalls that have hampered others.
According to the Times’ report, “Amazon plans to load the player with songs of a customer’s choosing before shipping it, the music executives said. And because Amazon maintains records of the CD purchases of its customers, it can also use that information to recommend music to be downloaded onto the players.”
Ross Rubin, director of industry relation with NPD Group, said Amazon may have an edge that others haven’t had in the past with its built in customer base and brand equity. However, he said it faces the same challenges that others have, namely, “The branded music player approach hasn’t worked because of Apple’s considerable iPod marketing and brand power.”
Moderator’s Comment: Is Amazon.com the company to finally put a dent into Apple’s stranglehold in the portable music player and downloadable music categories?
What must Amazon do to be successful? –
George Anderson – Moderator