Has Amazon Started a Price War?
Thursday April 9, 2009
This week, the iTunes Store started selling its 10 million+ songs without DRM copy protection (aka iTunes Plus) and introduced its new variable pricing structure. Operating at three pricing levels, you can purchase a song for $0.79, $0.99, or $1.29 depending on factors such as a song's age and popularity. The problem is, if you want to purchase a top 100 track, you'll now have to pay $1.29 instead of $0.99. You may argue that the extra 30 cents is worth it for a DRM-free track, and you'd probably have a good point - until you check out Amazon's prices.
In the highly competitive music downloads market, Amazon has ensured that the cost of most of its popular selling tracks are below the asking price of the iTunes Store. At the time of writing, Black Eyed Peas 'Boom Boom Pow' single for example is 30 cents cheaper if purchased from Amazon MP3. Another top selling single, Blame It (Featuring T. Pain) by Jamie Foxx, can also be downloaded from the Amazon MP3 store for 99 cents compared to $1.29 from the iTunes Store.
Wal-Mart also has a pricing structure that is more competitive than Apple. Songs can be purchased using their 3-tier system for $0.64, $0.94, and $1.24. How long before other music services feel the strain and join in on the looming price war
Source: http://ping.fm/wmJZk
Thursday April 9, 2009
This week, the iTunes Store started selling its 10 million+ songs without DRM copy protection (aka iTunes Plus) and introduced its new variable pricing structure. Operating at three pricing levels, you can purchase a song for $0.79, $0.99, or $1.29 depending on factors such as a song's age and popularity. The problem is, if you want to purchase a top 100 track, you'll now have to pay $1.29 instead of $0.99. You may argue that the extra 30 cents is worth it for a DRM-free track, and you'd probably have a good point - until you check out Amazon's prices.
In the highly competitive music downloads market, Amazon has ensured that the cost of most of its popular selling tracks are below the asking price of the iTunes Store. At the time of writing, Black Eyed Peas 'Boom Boom Pow' single for example is 30 cents cheaper if purchased from Amazon MP3. Another top selling single, Blame It (Featuring T. Pain) by Jamie Foxx, can also be downloaded from the Amazon MP3 store for 99 cents compared to $1.29 from the iTunes Store.
Wal-Mart also has a pricing structure that is more competitive than Apple. Songs can be purchased using their 3-tier system for $0.64, $0.94, and $1.24. How long before other music services feel the strain and join in on the looming price war
Source: http://ping.fm/wmJZk
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