Amazon Bets Against iTunes
08.07.07 - 01:52pm
Amazon is betting that iTunes is not the end all of downloadable music and is investing in a completely different online music experience AmieStreet.
What AmieStreet does that differs if from competing rivals is that it gives the unknown artist a place and a way to sell their music on their own and to possibly make a name for themselves.
AmieStreet also gives the buyers a chance to get the music for free by being the first to “discover” an artist.
The way it works is that all music first being sold on the site is sold for free. As users purchase the song and it rises in popularity it rises in price to max out at .98 cents.
Artists who sell their music on the site are paid .70 cents on the dollar after the first initial five dollars but do not have to pay anything to begin selling their music on the site. They also retain complete control over the rights of the music.
The buyers are given incentivized to find new music by obtaining new tracks at a free or super low price and then if they recommend that music to friends who purchase the music thus making the price go up they are given music credits to purchase more music.
There is no DRM embedded in the music and its actually a real cool way to find, discover and share music. Different from iTunes in that one is able to find the unique up and coming music rather than just the over played top 40. As Boltuch, chief marketing officer and co-founder of AmieStreet says, “AmieStreet gives music fans the crate-digging, bargain-hunting experience lost in transition from bricks-and-mortar music stores to online stores.”
AmieStreet is also planning to bring popular music from the site off-line for live music performances.
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