Apple Drops Prices on Unprotected Music
Since Amazon MP3 opened, it's been obvious that Apple would have to respond to its lower prices, and they have, by lowering prices on its unprotected music files to match at 99 cents.
While there is no reason to think that Amazon has taken the market by storm, it’s clear that it is a competitive force. If iPod users decide to try Amazon’s store in order to save 30 cents a track, suddenly the iTunes would become less central to the online music business. Nothing would do more to please the music labels, which have been increasingly concerned that Apple is dictating the terms of their business.
Amazon still has advantages, with MP3 format vs AAC, and with tracks from Universal Music Group. Still, by matching Amazon MP3's price, Apple will make pennypinchers (like most of us) think twice before buying from Amazon MP3.
While there is no reason to think that Amazon has taken the market by storm, it’s clear that it is a competitive force. If iPod users decide to try Amazon’s store in order to save 30 cents a track, suddenly the iTunes would become less central to the online music business. Nothing would do more to please the music labels, which have been increasingly concerned that Apple is dictating the terms of their business.
Amazon still has advantages, with MP3 format vs AAC, and with tracks from Universal Music Group. Still, by matching Amazon MP3's price, Apple will make pennypinchers (like most of us) think twice before buying from Amazon MP3.
