Latest Amazon.com Rumor: MP3s Coming
Billboard has the latest rumor on Amazon.com's quest to get into the digital download game. Word on the street is that Universal Music Group, too timid to dive in head first, will do some tests before deciding to follow EMI's entry into DRM-free waters.
"Amazon, which is considered the best bet to challenge iTunes' supremacy in the digital world, is shooting to launch its MP3 digital download store in May, a target date it has yet to publicly acknowledge. (Amazon declines comment.) Meanwhile, sources familiar with the situation say Universal Music Group plans to test the sale of unprotected digital music files, including some of its classical music catalog conceivably including titles by Andrea Bocelli, at the new Amazon store and other outlets."
Take note of the last paragraph. Two indie labels are mentioned. One wants to set different prices for different levels of sound quality/file size (which is similar to EMI's current strategy). The other is going to sit on the sidelines in the opening rounds for fear of not getting a good financial deal. Contrary to popular opinion, not all indie labels are aching to get their music out at whatever price and then make up lost margin selling branded belt buckles or what have you.
Though Amazon.com's digital download strategy has been talked about for quite a while, the rumors feel more legitimate compared to some of the previous reports. Until just a few weeks ago, the rumor was that eMusic was a possible acquisition. All the way back in August of 2005, News.com had an article about Amazon.com's planned entry into the music download market (the article arose from a job posting at paidContent). In February of 2006, reports came out that Amazon.com was planning its own branded portable music player and subscription service. More recently, news of the company's interest in digital downloads popped up in December of 2006 (read article at The Register).
[music jobs] HR Manager at EMI NA; New York, NY.
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