D.I.Y.

Analysis: What The Amazon Store Is… And Is Not.

Amazon_7 You can find our in depth first look at the new Amazon DRM free download store here. But just how "industry changing" is it?

The Amazon MP3 Download Store IS:

  • An important step forward for digital music.
    • Amazon has set the bar higher and that’s good for the entire industry. Plus Amazon name and buying experience and the universal usability of the tracks should help expand the universe of download buyers.
  • A another big nail in the DRM coffin.
  • A boost for the record industry.
    • Amazon is a partner the labels already know and trust who just gave them everything that Apple is fighting not to: variable pricing, full album downloads, universal compatibility and DRM sales of indie artists.
    • Come on WMG and Sony BMG…walk towards the light…
  • A serious threat to every other download store.
    • Not only does it have all of the major label DRM free product that they do. It has hundreds of thousands of indie tracks that the others do not.
  • A possible eMusic killer.
    • With defections from some a few of their most important labels, eMusic is left competing on price alone. I predict that when the checks from Amazon downloads equal those they get from eMusic that more indie labels will pull out.

The Amazon MP3 Download Store IS NOT:

  • The iTunes killer.
    • Serious competition yes. Killer no. Too many people are used to the iTunes to iPod experience no matter how easy Amazon makes it.
  • The answer to all your download buying needs.
    • It’s not their fault. The labels won’t let them…yet.
  • A mobile solution. 
    • With the Verizon’s deal with Rhapsody/MTV and the the iTunes Wireless store, Amazon needs to move quickly to add over the air downloads.

Tell us what you think. We’ll post the best comments and reaction from around the web tomorrow.

Bruce Houghton on 09/25/2007 in D.I.Y. | Permalink | Comments (9)
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9 Comments

  2. An important step forward for digital music.
    — Is Amazon going to make the pie bigger or divide it? I am doubtful that the paid download market is going to keep growing. It makes more sense for artists to give away tracks. Can anyone change my mind?
    A another big nail in the DRM coffin.
    — Agreed. DRM is pointless.
    A boost for the record industry.
    — Competing on price is not going to help anyone.
    A serious threat to every other download store.
    — Artists should sell their music in every store. We are a world of tiny, tiny niches. Be everywhere and sell in every store that makes it easy for you sell in.
    A possible eMusic killer.
    — If Amazon wants to win over every indie band on earth then return the highest percentage back to artists. When you hear Jediah (Jediah.com) standing on stage saying “go to Amazon to buy my tracks” instead of “go to iTunes” then you know Amazon is changing the competitive landscape.
    The iTunes killer.
    — Agreed – it won’t. iTunes is going to dominate for some time to come. Amazon needs the Long Tail pushing fans to their store.
    The answer to all your download buying needs.
    — Bundling books and consumer electronics with choice downloads. It may not be anyone’s answer to all of your downloading needs; however, grabbing a few free tracks with your lump of Harry Potter will motivate some to dabble.
    A mobile solution.
    — Through a carrier – I don’t get it. The carriers don’t get it… iTunes via the iPhone makes sense. Everything else is just everything else.
    Thanks for the forum!
    Bruce

  4. Nobody has seemed to touch on this point yet… remember Steve Jobs’ desperate letter to the industry about their crippling DRM? How has the iTMS yet to secure as much DRM-free content as these other stores? I smell a hypocrite attempting to save face in front of consumers. Can’t wait for Amazon to open up to non-US residents.

  5. Even when Amazon opens up to non-US customers, their search and browse options have a long way to go before they catch up to eMusic – search by artist/title only? No search by label?
    Searching classical by period is hopeless – Haydn, Bach, Vivaldi all appear high up in the ‘Modern, 20th and 21st century’ results. eMusic’s not perfect in these respects (tagging of classical music is terrible industry-wide) but based on a quick play with Amazon it’s a long way ahead at the moment.

  6. Having had a 200 dl per month account at e-music for the last 6 months, I pretty much have had my fill of what they have to offer. I have all the Jazz and off beat stuff I can take. I was using eMusic and CDBaby for indie stuff, but after checking out Amazon, I think they will have my business going forward. I bought 4 albums today at an average price of about $7, and canceled my $50 per month eMusic account. I applaud their entry into this market.

  7. Downloaded a couple of tunes today. Nice experience and I am grateful to be more free of iTunes.
    I had to recently migrate my music to another hard drive and while I was able to achieve this, it was way to hard and cumbersome. I had to of course deauthorize my account, and I only backed up my purchases figuring it would be easy to move the music from the iPod to the new iTunes account on the new drive, etc. Well I succeeded, but not a trivial exercise and not for the average user.
    I was amazed I could not move purchased music on to an external harddrive. Now with Amazon, these problems will be more or less moot.

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