Posted on 02/16/2006 1:20:02 PM PST by x5452
Report: Amazon plans to take-on iTunes, iPod By Dan Nystedt, IDG News Service
Amazon.com Inc. plans to launch its own Internet music service to rival Apple’s iTunes Music Store, the Wall Street Journal reported Thursday, citing unidentified sources.
The world’s largest online retailer also plans to sell its own-branded portable music players, and a subscription service that would offer deep discounts and preloaded songs to users of its music players.
The company is in advanced talks with four global music companies about a digital music service that could be launched as early as this summer, according to the report. With its history of selling CDs online and its huge customer base, Amazon could pose a formidable threat to Apple’s domination of the online music business.
Amazon still needs to ink licensing agreements with the four music companies: EMI Group PLC, Sony BMG, Vivendi Universal SA’s Universal Music Group and Warner Music Group Corp., the report said.
The report said Amazon may tap South Korea’s Samsung Electronics Co. Ltd. to build its digital music player.
Amazon has discussed offering the portable music players free as part of a long term subscription package, or selling them with preloaded music that could be swapped out for other songs during the course of the subscription, according to the report.
Amazon could not immediately be reached for comment.
c'mon jeff, just buy 'em up and have done with it
The so-called majors are shrinking rapidly.
As I already posted today in another thread, half of the 150 top-selling CDs last year were from independents, not the majors.
I wish Amazon would do what it does best...sell items. They should not getting into this business. I love amazon. I order from them all the DVD's. We are stationed overseas so it is great to have them available.
The fact that they are going totally outside their expertise to create a player and trying to challange the top player in that market is naive and stupid. They'd make a bucket load finding a way to get protected songs sold on amazon onto the iPod or into iTunes.
The only way they would have success is if they can offer music no one else has. Led Zeppelin and The Beatles are missing from all digital stores to my knowledge. And Amazon does have a pretty big stick to beat these companies with. What would the record companies say if Amazon threatened to not carry their records is the companies don't come on board with the digital music store?
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