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Amazon Plans Music Service To Rival iPod
Posted by
Zonk
on Thu Feb 16, 2006 09:14 AM
from the bringing-the-star-destroyers-around-for-a-broadside dept.
from the bringing-the-star-destroyers-around-for-a-broadside dept.
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."
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theodp writes "Today, Amazon confirmed that they are testing what some are calling 'Amazon-Sense', a paid ads program in its affiliate network that resembles Google's ad program." From the article: "The speculation about Amazon's potential AdSense clone arose from the statements made by one of the members of the e-tailer's associates program."
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Better ask mom first. (Score:2, Funny)
But wait! (Score:3, Interesting)
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.
Shocking, but true news! Walmart is bigger... (Score:2)
Walmart moves a much greater revenue of music than Apple. So tell me again why they need a download service.
Also, much like Apple uses iTunes to pull through iPod sales (or vice vers
Re:But wait! (Score:2)
Amazon is a great brand in many ways, but that doesn't mean they can roll right into a new business.
Misguided, yes. Flamebait, no.
What was the last TV commercial you saw that advertised Wal*Mart's music download service? Radio commercial? Commercial in their own in-store TV network? What? You haven't seen one?
THAT
Re:But wait! (Score:2)
Who will want another kind of MP3 player when an iPod plugs right into your car????
Re:But wait! (Score:2)
I don't know about 60% of cars, but it does look like Apple maybe has 60% of car manufacturers [apple.com] set up.
Will they be able to compete? (Score:4, Interesting)
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
Re:Will they be able to compete? (Score:3)
ummm (Score:2)
No moving parts? I waited for the nano specifically for the lack of an HD, as I dropped my discman about twice a year.
Re:Will they be able to compete? (Score:3)
You see, I wanted an mp3 player for some hard-core fitness use. An iPod lpoks great attached to the arm (arm strap not included btw) of the hot chick wal
Re:Will they be able to compete? (Score:5, Insightful)
Parent
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.
Parent
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?
The Coolness Factor... (Score:5, Insightful)
Re:The Coolness Factor... (Score:2)
Re:The Coolness Factor... (Score:2)
But it's still not enough. Most people are followers, but they don't want to be perceived as such. Thus, they follow people who are able
Re:The Coolness Factor... (Score:3, Funny)
After reading that subjectline I was expecting an intellectually stimulating lecture on the intricacies of modern refrigeration technology. Now I am disappointed...
Re:The Coolness Factor... (Score:3, Insightful)
The argument that iPods are overpriced doesn't hold water anymore...
Partnership (Score:5, Informative)
Samsung makes excellent products. I own a Samsung laser printer and microwave, and used to have one of their cell phones till my wife got me a Motorola upgrade for Christams two years ago. Their products are pretty reliable and robust, and if thay can create a decent MP3 player for Amazon, it should give the iPod a run for its money, though I suspect Apple's lead will shrink but never disappear unless they make some crucial marketing mistake.
And let me guess... (Score:2, Funny)
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.
Re:Headline (Score:2)
Re:Headline (Score:2)
iPod and iTunes (Score:4, Informative)
ipod killer huh? (Score:3, Interesting)
Oh crap. they are getting into the hardware business.. and the article title is from the WSJ not slashdot. The summary says nothing about that though. i wonder how many people who didnt RTFA are going to post something like the paragraph above.
possible name... (Score:5, Funny)
Duh... it'll be... (Score:4, Funny)
And the hardware will be called the aPod!
Parent
Our local shop just closed (Score:2, Funny)
But on another note, I wonder much kicking and screaming the record company execs did as they were being dragged by collars into this by the many smarter people around them?
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 a
Changing technology fields. (Score:4, Interesting)
New headline... (Score:4, Funny)
Ah well...hope springs eternal for marketing types (Score:5, Insightful)
This has all the trappings of another expensive mistake.
Mistake? (Score:2)
Not everyone can afford to drop $200-$300 on a fancy iPod, that's why there is still a market for $30 CD players at Walmart. But if Amazon's supply chain can bring the cost of an iPod-alike down to $70 or below, they will capture that whole other market segment Apple has ignored - the ones that don't care about trendy and hip, the ones that care about value. AKA the majority of the populace.
Re:Ah well...hope springs eternal for marketing ty (Score:3, Interesting)
Amazon is evolving into something like the Sears, Roebuck catalog, which was in every middle class home for 100 years. I think this can work.
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.
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:Captured HW and subscription based content =... (Score:2)
Uh, it doesn't have 80% of the mp3 player market share?
-Eric
How? (Score:4, Informative)
I can burn a CD from protected AAC files today, as many times as I like. Think you'll be able to do that with the Amazon songs?
How many computers will the Amazon songs work with (this is more likley to match ITMS, but it's a good question).
Can I go to Bolivia for a month and keep playing my music? Not if Amazon is a subscription model, it will have to phone home with regularity to make sure I own what I am playing. Apple doesn't collect stattistics on what you are playing, but Amazon could (admittedly with a low sampling interval).
Basically, do you like owning or renting? That's the difference.
Parent
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.
Re:Enough (Score:3, Funny)
beta, ofcourse
what a relief for Apple... (Score:4, Insightful)
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?
Not impressed (Score:3, Interesting)
the itunes issue isn't about cost. music is anonymously free all over the net. people WANT to pay for itunes. an amazon branded electronics device won't be competition for the ipod for two reasons: (1) its going to have to be spectacular to compete with the ipod on looks/UI alone (harder than it sounds), and (2) people like to know who is making their products (i.e. a brand). Amazon isn't known as an electronics maker - it's like Walmart selling a DAP.
I haven't read the article, but if Amazon expects its brand to move DAPS, they are mistaken. If they think they can honestly compete with Apple on heart-share (Apple succeeds in establishing an emotive connection with its users, thus inspiring loyalty - it's like a wierd kind of nationalism or something) or on design - it seems like a fools errand.
What doesn't play on iPod--doesn't play, period (Score:2)
-Eric
That's a licensing minefield (Score:3, Interesting)
So, let me try and get this straight. I can't sell my current player on eBay with pre-loaded tracks, but I can buy a new one from Amazon with pre-loaded tracks? OK, fine, what happens when I want to sell the Amazon one? Can I sell it with those pre-loaded tracks (and only those, and how do I know several years down the line which ones were pre-loaded) or do I have to strip them off as well? Can I copy them off and back them up? If the device dies and needs a hardware replacement, can (and will) Amazon pre-load the new hardware with the same tracks, or do I have to pay for them again? Will my insurance cover the cost of replacing these tracks (and any others that I've downloaded) as well as the device if it's broken or stolen, and even if does in theory, how can I prove that they were actually still on the device when it was lost?
It's a bit rich for music megacorps to demand that we respect copyright law when an informed and educated person can't in all honesty figure out what the law is, or specifically how it applies in cases like these.
Music Rental (Score:2)
I was absolutely shocked when I discovered this same method with my DVR (through Rogers). When my credit card expirey date came, they promptly shut off my cable and told me to contact the support line (pretty rude if you ask me... should have just asked me to contact them on my previous bill). But even ruder was the fact that *I couldn't view the mat
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!)
The only way this can work. (Score:4, Interesting)
We are all impatient when we buy a new CD. We want to hear the music right now. For a lot of people, this means stealing a copy of the music to hear in the interim. Unfortunately for the industry, for a lot more, it means stealing the music outright and never paying for it.
So what if Amazon let me buy a CD on their site and then immediately download all the tracks to my Amazon-branded player, and then a few days later, the physical disc arrived in the mail for me to add to my collection, at which point I could erase the digital copy from my player, or just leave it there and continue to listen to that copy, secure in the knowledge that I have a physical copy, with artwork, securely stored at home?
The ability to buy online and listen instantly *coupled* with the ability to own a physical CD copy of something is the one thing every digital download service thusfar has failed to deliver and is the one reason I don't use any of them. I have an iPod, but I've never bought a single track from iTMS. I still buy CDs and rip them to mp3 to fill my iPod, and yes, sometimes I P2P a copy of something I've just bought, because I want to hear it without waiting for it to arrive.
If Amazon provided this kind of service, paired with a high quality, functional Amazon-branded player, I would seriously consider dumping my iPod for their player. I don't see any other program being successful for them.