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Summary:

Amazon is getting more aggressive in its attempt to muscle into the online music space. On Thursday, it announced a HTML5-based MP3 store that allows consumers to buy and play songs on their Apple devices.

Amazon auto-rip screenshot

Amazon  is making another major push to chip away at Apple’s dominance in online music with the launch of an MP3 store optimized for devices like the iPhone and the iPod touch. The store, with a catalogue of 22 million songs, lets users buy songs using their Apple devices and listen to them using Amazon’s Cloud Player app.

The service is browser-based (you can see the specially-formatted for Safari mobile website here) which lets Amazon avoid the 30 percent commission that Apple takes for all sales that take place in iTunes. When a consumer makes a purchase, the music is stored in the cloud and can be accessed in the cloud or saved to a library and played from a variety of devices, including those running Android. The service will also offer daily deals like 69 cent songs and $5 albums as well as individualized recommendations based on purchase history.

Amazon iOs music screenshot

“Since the launch of the Amazon Cloud Player app for iPhone and iPod touch, a top request from customers has been the ability to buy music from Amazon right from their devices,” said Amazon’s VP of Music Steve Boom in a Thursday release announcing the store.

From a strategic perspective, the offering shows Amazon’s determination to muscle into the cloud-based entertainment market which, on the music front, is dominated by Apple and Google.

Last week, Amazon offered another incentive for consumers to try its cloud service by providing a free digital copy of any CD they have bought in the last 15 years. The deal also applied to new CDs they buy.

  1. This statement is factually wrong:

    “which lets Amazon avoid the 30 percent commission that Apple takes for all sales that take place in iTunes.”

    Only sales of apps have a 30% commission in the iTunes store. The commission for music sales is more like 3%

    N

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  2. Record labels have little to no reason to stay with itunes.

    They can sign with Amazon and have access to both Apple and Android users.

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  3. Amazon’s share price goes up. Apple’s share price goes down. Apple really needs to do something about that Amazon instead of letting that company just steal everything away. I sure wonder how Amazon actually makes any money, but Wall Street doesn’t seem to care.

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    1. Amazon is not interested in making money now, they want to play the long game but must first break down everyone else. Amazon is just extending their zero-sum game (sell goods at cost if they must) to give their customers better experience.

      Whoever has the deepest pocket and customer based will last longer. What I don’t understand why they are messing with Apple in their own turf.

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  4. Amazon and Apple think they are in competition with each other. Aren’t they, in fact, in competition with Spotify for this particular service?

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  5. Itunes is old…all younger people are Spotify Pandora Mog.

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    1. I’ll be purchasing music here then. Apple stopped their 69 cent songs. I also stopped buying music, coincidentally. :-) Apple reinstates their 69 cent songs then I may coincidentally start buying again. See how it works?

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