Amazon Plans Music Service To Rival iTunes
by Ethan Smith and Mylene Mangalinden
The Wall Street Journal Online – February 16, 2006; Page B1
In recent years, Amazon.com
Inc.Chief Executive Jeff Bezos has explained his company’s deliberately
paced approach to the digital-music business by saying he wants to avoid
simply imitating the dominant player in the field, Apple Computer Inc.’s iTunes Music
Store.Now Amazon, the world’s No. 1 online retailer, is in advanced talks with
the four global music companies about a digital-music service with a range
of features designed to set it apart. Among them: 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,
not unlike mobile phones that are included with subscription plans as part
of the deal.Music executives privately welcome Amazon’s plans, which they see as one
of the only credible challenges to Apple’s hegemony in both digital music
and portable players. Now the question is whether Amazon’s massive customer
base is enough to offset a long delay in entering the online music
business.
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Interesting news. You would have to figure that sooner or later Apple’s
dynasty with iPods and iTunes would be challenged. I was thinking we’d hear
from Microsoft first, as they have traditionally waited until the gittin’
was good then steamrolled in to dominate the market. But things have changed
and the market is different, more sophisticated. And with the Internet,
consumers are able to be more discerning. Remember Dell’s MP3 player?
It’s been discontinued. It was great for a while, with longer battery life,
but I thought it just didn’t look very appealing. Products today have to
look good and work well, and they gotta have some buzz appeal for the device
to catch on. People talk.
I’ve had two of the four iPods in the family fail in less than a year.
It’s the price you pay for being on the leading edge, but I have run into
many folks that thought Apple was overpriced and troublesome. Some people
have paid for a huge library of iTunes songs, only to lose them on their
computer because they didn’t understand the complexity (and necessity) of
backing up. So, there is room here for greater ease of use and improved
customer satisfaction.
I sorta chuckle when I think about an Amazon MP3 player. I’m envisioning
picking it up after syncing with my PC, and being greeted by the scrolling
screen that says, “Other people who bought that music also liked
…….” Or a play list that is automatically inserted with demos of
songs like the ones I downloaded. Do I want that? Hmm, feels weird.
I wonder if Amazon will offer a podcasting directory – for free AND for
pay. That would get some attention. It wasn’t mentioned in the article. A
combination free podcast directory with for-pay podcasting that allows the
podcaster to charge like Audible does so there is some revenue-sharing.
Rumor is that Amazon’s MP3 player and subscription service are planned
for release in the summer. Well timed for the kids at home, I’m sure.
What, o what, is Microsoft’s move going to be and when? Bill Gates keeps
dropping hints. My sense is that Microsoft would be supportive of the
podcasting community, and, needless to say, the Microsoft juggernaut could
wield some might to manufacture something amazing. They already have the
hardware expertise with their games. But would that mean their MP3 player
would be a kind of living room game device that also plays MP3? Geesh, I
hope not.
We shall see soon enough. Seems like this year both Amazon and Microsoft
will step into this market, and no telling who else.
Tom
