Amazon enters musical war with Apple

Amazon has continued market expansion after entering the world of iTunes. The company has opened music store and are offering iOS users with a chance to directly download the iTunes by using safari browser.

Their catalog reportedly consists of an install 22 million songs, making it a serious alternative to iTunes and their latest venture could lead to a cold war with Apple apparatus, which deal mainly in the iPhone mobile market,
iPod and iPad tablets.

"Consumers can buy the music once and listen whenever they want, anywhere, with a $ 5 albums and songs to 69 cents," wrote Steve Boom, senior vice president of Amazon Music.

Besides the opening, it competes on price and eases to arrange the music on the Internet and therefore not linked to the device purchase.

For now the service is only open in the U.S. and Canada, and no news of when will expand to Europe, but they probably start spreading it in UK, first, and will continue for the rest of Europe then, keeping in view the trade policy
of the company in the past.

Internationally, the company of Jeff Bezos has a catalog of 29 million songs, although only available to U.S. rights to 22 million of them.

The main new feature for developers and businesses is that Amazon will not charge the 30% that Apple does charge for installing an application. Amazon has confirmed that the music buying from their one shop stop will immediately
be accessible in its cloud service which can lead to personal music on Apple’s iTunes.

In the U.S., the two companies are vying music market, not digital but physical. Although iTunes has 64% of the market for music distribution, sales share of 29% of the sales of the entire music industry, compared with 19% of Amazon
and 11% of the chain of Walmart stores, according to latest data from NPD Group.

But what has grown in the last year is not selling music, but their distribution by social networks (45%) and streaming music for free with advertising or subscription.

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Posted by Farasat Ali on Jan 19 2013. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry