Stan Beer
Saturday, 12 January 2008 04:56
Opinion and Analysis
Page 1 of 2
With Amazon now offering DRM free tracks for 89c compared to Apple iTunes 99c for its DRM restricted tracks, why would music fans continue to buy music from iTunes? However, it's Amazon's threat to the iPod not iTunes that Apple should be worried about.
Just to be clear what we are looking at here, the
Amazon music store, currently only available to US users but eventually
to go global, offers users unrestricted music in 256 kbps MP3 format
compared to iTunes DRM restricted music in lower quality 128 kbps AAC
format. What's more Amazon is offering users these "superior" downloads
that can be copied to and played on any device that supports MP3 (which
is most) for as low or lower price than iTunes charges.
Yes, it is true that iTunes does offer some superior quality 256kbps AAC DRM free tracks from the EMI catalogue on its site. However, all the DRM free music from Sony BMG, Warner Bros and Universal is missing.
But wait there's more! Linux users can also buy and download music from
Amazon MP3. And, unlike iTunes, Amazon MP3 is just a store and not a
music organiser.
You can, however, choose to have downloaded tracks automatically
imported into iTunes or Windows Media Player if you have those programs
installed.
However, if you're a Linux user or you don't like either of those two
organisers, you can simply take those downloaded MP3 tracks and import
them into any music organiser you fancy.
Clearly, Apple now has a major problem with iTunes and the music
companies. The fact that iTunes is only able to offer DRM free tracks
from the smallest of the big four companies suggests very strongly that
the music companies are looking to slay the monster they helped to
create.
However, the real money for Apple comes not from iTunes but iPod sales.
With more than 100 million iPods in the market, the installed base is
huge. As fas as iPod owners are concerned if they can get their music
cheaper and DRM free elsewhere, then fine. As far as Apple is
concerned, as long as customers keep buying iPods then there's no skin
off the Apple. Or is there?
In fact, there could be a very real threat to the iPod from Amazon waiting in the wings.
