Amazon Plans Music Service To Rival iPod 161
theodp writes "The Wall Street Journal is reporting that Amazon is in advanced talks with the four global music companies about a digital-music service that could be launched as soon as this summer. It would feature Amazon-branded portable music players, designed and built for the retailer, and a subscription service that would deeply discount and preload those devices with songs."
The Coolness Factor... (Score:5, Insightful)
Headline (Score:2, Insightful)
I assume you mean to rival iTunes? As far as I know Apple isn't selling their own brand of hardware player. Should be interesting. The digital music download space is getting pretty crowded.
They Might Have to (Score:2, Insightful)
The CD medium has been a double edged sword for RIAA - the popularity of music on CD's over the past decade has increased sales and the influx of technology has made copying CD's easier. While I will argue that there aren't as many sales lost as they say, I will agree that because technology exists there are problems. That being said; most consumers like to own their purchases and CD's are still the best way to do so.
Re:Will they be able to compete? (Score:2, Insightful)
This is the mistake every mp3 player manufacturer is making. They assume that Apple's iPod represents the state of the art, and all they can hope to do is compete with substandard products priced lower than the lowest iPod.
It's a nonsense of course. These companies could come out with a better product than the iPod if they bothered to put any effort in. As it is, why would I pay $200 for a shoddy 2GB flash player, when I could just pay $400 and get a 40GB video iPod.
Re:The Coolness Factor... (Score:3, Insightful)
The argument that iPods are overpriced doesn't hold water anymore...
Ah well...hope springs eternal for marketing types (Score:5, Insightful)
This has all the trappings of another expensive mistake.
Captured HW and subscription based content =... (Score:5, Insightful)
There was no mention of compatibility with iPod, or any other player, that I read. This sounds more like an Audible-like service, but for music. Near total lock in to the Amazon format, without any portability.
Enough (Score:3, Insightful)
Until something actually rivals (or is beginning to rival) the iPod / iTMS combination, can we please stop having these stories? If I see one more iPod / iTMS rival and/or killer story then I'm going to throw up. They are just about as annoying as latest story on the next new thing that Google is supposedly working on.
what a relief for Apple... (Score:4, Insightful)
Re:But wait! (Score:3, Insightful)
Keep in mind that Wal Mart, the world's largest, most powerful retailer can't compete with iTunes with their music service. How many people even know Wal Mart has a music download service...
Amazon is a great brand in many ways, but that doesn't mean they can roll right into a new business.
What Amazon has ... (Score:5, Insightful)
- An established, well trafficed website. People already go to Amazon to shop for music and videos, allowing them to immediately download instead of purchasing a cd/dvd is an obvious evolutionary step. They don't need to try to drive people to use their service, people already do.
- Purchase hardware directly from them. If they do indeed sell a hardware player as well, then this makes it even easier for the consumer. "Hey, I'm thinking of buying a mp3 player, I'll go over to Amazon and check them out". And lo and behold, you can purchase the Amazon player and get whatever music you order pre-loaded onto the sucker in one fell swoop. Even Apple doesn't offer this level of service.
- Amazon already has relationships with the music industry and they are "established" enough to be a credible (in the eyes of the industry) alternative. Remember, Jobs and the music industry don't exactly see eye-2-eye on issues like pricing. I bet the music industry execs are chomping at the bit to play with someone who will bow more to their desires in order to establish a foothold.
Not to say that this Amazon player is a shoo-in, but I think it's probably the most credible challenge to the Apple "monopoly" that has come around in a while. It will indeed be interesting to see if they can gain some measure of success vs the iPod/iTMS steamroller, or if they just end up sucking up all the after rans, in effect winnowing the market to two players.
What Amazon *should* do here. (Score:5, Insightful)
I think the idea of selling music players preloaded with music is really, really great. Totally. But I don't think you need to cannibalize your existing business to do it.
Take a look at your company's "Top Sellers" page for electronics [amazon.com].
Note that six of the top ten are iPods. (The others are lower-price, and probably lower-profit, items.)
(You might also note that seven of the top ten items on your company's "Top Sellers" page for computers [amazon.com] happen to be Apple products. See a trend?)
You, of all people, know that people want iPods. And you're more than happy to sell them to them. Lots and lots and lots of them.
Soooo... I hope you're also talking to Apple about this idea. Yes, their DRM doesn't really work well with the idea of a new portable device showing up with music on it that's not on the user's computer... but then, does anyone's?
But if you asked, I bet they'd be willing to help you set up some sweet bundles of iPods and high-ticket iTunes Music Store cards, with a nice margin built in for you. After all, you move a lot of kit for them.
And maybe Steve and Bono would even let you be on stage with them sometime. Wouldn't that be neat?
Re:Captured HW and subscription based content =... (Score:2, Insightful)
I would be surprised if you would not be able to rip your own CDs or add existing MP3s you already have.
Re:What Amazon has ... (Score:3, Insightful)
Amazon might be able to distinguish itself from iTunes in the way you've described, but Yahoo already has many of these things: one of the internet's most popular web sites, the ability to tie together a set of offerings, a subscription model and better prices than iTunes.
So how is Amazon going to compete with Yahoo when Yahoo has a years head start?
Re:Will they be able to compete? (Score:5, Insightful)
An easy way to hook this in well... (Score:3, Insightful)
Your music doesn't "expire" if they cancel account. (That's just a crappy thing to do, might as well go the iPod route then.)
And the kicker to hook people in.. You go to Amazon to shop for a CD, for an extra $1 when you buy it you can download all the songs from it into your device right then so you can listen while the CD is being shipped. This could be with or without subscription. (Make it free if you have a subscription so that someone buying 5-10 CD's at amazon might be better off getting a months subscription which hooks them on your service!)