Blog Post

Amp’d To Sell OTA Downloads For 99 Cents; Sony BMG Sits Out

However much you want to beat down on Amp’d (too much hype etc), expect it to have the balls: the “edgy” MVNO, about to launch December 15, will sell over the air downloads for 99 cents, breaking away from others in the industry who think that over-the-air full track downloads should command more than the online downloads. These songs will be dual delivery, that is, will also be available for download onto the subscriber’s PC.
CEO Peter Adderton said in this story that he’ll lock it at Apple’s pricing and when Apple changes (increases or moves to variable pricing), so will his company. “I don’t think that we can price music above the market, and right now Apple has set the market.”
According to story estimates, Amp’d will lose money on each song sold: The music labels the company has signed on are getting the same rate they receive for their mobile music sales via Sprint–generally half of the $2.50 price. That means Adderton’s service will pay the labels around $1.25 for each 99-cent song it sells.
For that reason, presumably, Sony BMG will not be part of the service. Sony’s three major competitors: EMI Group, Warner Music Group and Universal Music Group, which invested in Amp’d earlier this year, will provide songs, a total of about 200,000 songs.
Adderton said he eventually expected mobile downloads to cost between $1.49 and $1.89 for top-tier songs.
Related:
Some Amp’d Exec Team Members Leave; Proposed COO Loses Court Case
Sprint Music Store Pricing Is Off-Key
Sprint Launches Music Downloads, Local News Service