Amazon To Open iTunes Rivalry
04.24.07 - 10:49am
Recently the talk has been that Apple has full control of upcoming talks with the “Big Four” - the major music labels renegotiations. Apple is expected to make more demands for DRM free music and with control of over 80% of the digital market they do have a lot of power in the negotiations, however recent news that Amazon is launching its own DRM free online music store next month may provide enough competition to leave Apple out in the cold.
There has already been speculation that Universal may sign with Amazon to allow their music to be purchases DRM free.
Why Amazon instead of Apple - Amazon is more likely to allow varied pricing giving the record labels what they want - more money. Apple has stuck to its .99 cents a download for all music irregardless of popularity, although they recently went up to $1.29 for EMI’s DRM free music. However this may still not be enough for the record labels who want control over pricing of their music.
If Universal does sign with Amazon for DRM free music it should mark the end of DRM altogether. Universal is the largest of the major labels and it is likely that all others will quickly follow Universals lead. This will allow for a whole new digital world in music land. Apple will no longer have such a monopoly with iTunes and competition would be given free reign as iTunes music could be played on something other than the iPod and downloads for the iPod could be bought elsewhere. It would also make all the trouble in Europe over iTunes come to a screeching halt. No more DRM’s no more monopoly. It will be interesting to see who will be the winner in a DRM free world, it will also most likely mean a huge rise in the already soaring market of digital music.
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