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Technology news and Jobs arrow Our Blogs arrow The BeerFiles arrow DRM free Amazon MP3 a core threat to Apple
DRM free Amazon MP3 a core threat to Apple PDF Print E-mail
Written by Stan Beer   
Saturday, 12 January 2008
With Amazon now offering DRM free tracks for 89c compared to Apple iTunes 99c for its DRM restricted tracks, why would music fans continue to buy music from iTunes? However, it's Amazon's threat to the iPod not iTunes that Apple should be worried about.

Just to be clear what we are looking at here, the Amazon music store, currently only available to US users but eventually to go global, offers users unrestricted music in 256 kbps MP3 format compared to iTunes DRM restricted music in lower quality 128 kbps AAC format. What's more Amazon is offering users these "superior" downloads that can be copied to and played on any device that supports MP3 (which is most) for as low or lower price than iTunes charges.

Yes, it is true that iTunes does offer some superior quality 256kbps AAC DRM free tracks from the EMI catalogue on its site. However, all the DRM free music from Sony BMG, Warner Bros and Universal is missing.

But wait there's more! Linux users can also buy and download music from Amazon MP3. And, unlike iTunes, Amazon MP3 is just a store and not a music organiser.

You can, however, choose to have downloaded tracks automatically imported into iTunes or Windows Media Player if you have those programs installed.

However, if you're a Linux user or you don't like either of those two organisers, you can simply take those downloaded MP3 tracks and import them into any music organiser you fancy.

Clearly, Apple now has a major problem with iTunes and the music companies. The fact that iTunes is only able to offer DRM free tracks from the smallest of the big four companies suggests very strongly that the music companies are looking to slay the monster they helped to create.

However, the real money for Apple comes not from iTunes but iPod sales. With more than 100 million iPods in the market, the installed base is huge. As fas as iPod owners are concerned if they can get their music cheaper and DRM free elsewhere, then fine. As far as Apple is concerned, as long as customers keep buying iPods then there's no skin off the Apple. Or is there?

In fact, there could be a very real threat to the iPod from Amazon waiting in the wings.



 
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