Indie Music

Amazon To Enter Crowded Download Market With MP3 Only Store

Late last week Amazon began circulating contracts to labels aiming for a late 1st Q ’07 music downloadAmazon_12 store launch.  Rumors of an Amazon entry have been circulating all year, but died down as attention
shifted first to the URGE launch and then to Microsoft’s ZUNE.

What is most surprising (and exciting) about Amazon’s new store is that the online giant is apparently telling labels that they will only sell DRM free mp3’s and will offer variable pricing.

Playfor_sure
As the first major download store launch since Microsoft made it clear with ZUNE that it was not supporting it’s own PlayForSure DRM, perhaps Amazon was left with no choice. Yahoo! Music, Napster, URGE and others based on PlayForSure are starting to look like forgotten step-children.  Only eMusic has gained real momentum against the iTunes juggarnaut and eMusic sells mp3’s.

Plus by embracing mp3’s, Amazon completely avoids all player compatibility issues by selling in the only format that plays on all devices including the ubiquitous iPod.

Emusic_5
I
nsiders began to wonder if Amazon was plotting a new course when it hired former Dimensional staffer Scott Ambrose Reilly. Known in the industry as Bullethead for hisOrchard_18 distinctive scalp, he was responsible for many of the early deals made by Dimensional owned eMusic and The Orchard.  The recent label approaches seem to confirm that Ambrose Reilly is at least partially behind Amazon’s bold moves.

It is unclear what major label product will be included at Amazon’s launch.  It may well be limited to a
broadening of the selective experiments we’ve seen in recent weeks plus perhaps some Insoundlogotop_1older catalog.  Most indies will probably jump on board since many are already offering mp3’s via eMusic and the new Insound mp3 album-only store.

Itunes_girl_2
Amazon has also given both major and indie labels something they’ve been demanding from iTunes but not getting – variable pricing.  How well labels support Amazon could either force Apple’s hand or allow it to remain dominate.

COMING THIS WEEK @ HYPEBOT: Will Amazon effect eMusic?  How will other download services react? What about the major labels? IS 2007 THE YEAR OF THE MP3?

Bruce Houghton on 12/18/2006 in Indie Music | Permalink | Comments (21)
Share on:

21 Comments

  1. Links

    Merry Swankster’s got the BBC recording of the new(ish) Arcade Fire song Intervention A live version has been floating around for years, but is a newer. You can listen to the album version by calling 1-866-NEON-BIBLE x7777 (clever marketing ploy)…

  2. Amazon to Launch their own MP3 Store

    Amazon To Enter Crowded Download Market With MP3 Only Store
    What is most surprising (and exciting) about Amazons new store is that the online giant is apparently telling labels that they will only sell DRM free mp3s and will offer variabl…

  4. Amazon öppnar mp3-butik

    Amazon kommer öppna en musiknedladdningsbutik under första kvartalet 2007 för försäljning. Det som är intressant med nyheten är att butiken…

  6. DRM-freie MP3s demnächst bei Amazon?

    Amazon To Enter Crowded Download Market With MP3 Only Store, wenn an dieser Meldung etwas dran wäre, dann käme dies einer ziemlichen Eruption im Musikmarkt gleich. Derzeit beharr…

  7. Mischt Amazon bald im MP3-Markt mit?

    Das sind ja spannende GerchteInformationen (en), die da von Nico weitergetragen werden:
    Amazon To Enter Crowded Download Market With MP3 Only Store, wenn an dieser Meldung etwas dran wre, dann kme dies einer ziemlichen Eruption im Mus…

  8. Another great DRM-free mp3 store is http://www.iomoio.com. Their holiday’s bonus scheme (till 23:59:59 12/31/2006) is amazing. I’ve deposited $30 and got $60 credited into my account. I mean it’s already cheap (price per song is only $0.15) and now with bonuses like that, you can say that one song costs ONLY $0.075. SEVEN cents for DRM-free mp3? I DEFINITELY CAN LIVE WITH THAT:)

  9. MP3 statt DRM

    Immer mehr deutet darauf hin, dass die Tage des DRM für Musik gezählt sind. Nun haben eine Plattenfirma und ein Musikhändler angekündigt, auf DRM verzichten zu wollen. Das Indie-Lable Ropeadope verkauft künftig MP3s online und wird den Vertrieb von CDs…

  10. MP3 statt DRM

    Immer mehr deutet darauf hin, dass die Tage des DRM für Musik gezählt sind. Nun haben eine Plattenfirma und ein Musikhändler angekündigt, auf DRM verzichten zu wollen. Das Indie-Lable Ropeadope verkauft künftig MP3s online und wird den Vertrieb von CDs…

Comments are closed.

Top