by Playfuls Staff |
16th February 2006
Microsoft is not the only company who envies iPod’s success in the entertainment market. A lot of companies are trying to develop alternatives to Apple’s MP3 player or music download services in order to conquer iTunes. [more]
One by one, Napster, Real Network and Yahoo unveiled during last year digital subscriptions services from which the users can download directly to their MP3 players any kind of music they like, paying only a few dollars.
Oh..I forgot to mention that neither one of this music service isn’t compatible with iPod, which raises a bigger problem for Napster, Yahoo or Real Network because Apple with iPod has a 85% share from MP3 players market worldwide. And there is another problem. On Apple’s iTunes people are buying the songs, not just renting them for a period.
To cut a long story short, neither Yahoo, Napster or Real Network are a real competitor to the successful business model created by Apple with the iPod + iTunes “deadly” combination.
But other companies are ready to try to push their entrance in a market where are involved millions of dollars. According to a WSJ report, Amazon.com, the biggest online retailer is ready to try its luck with a digital music download service. Financial Times has even more details and it seems like Amazon.com contacted already four major music labels to license their content and the system is ready to be unveiled in this summer.
According to reports, Amazon.com intends also to offer a music player to those who will subscribe to its music service. The digital music service may be a very good opportunity for Amazon.com, because of its huge user base and of its very powerful brand. But if Amazon.com will follow the business model created by Real Networks, Yahoo and Napster, Apple has no reason to worry; its dominance is not going to change.
The four music labels contacted by Amazon.com are Vivendi Universal‘s Universal Music Group, Sony BMG, Warner Music Group Corp. and EMI Group Plc. Sony BMG and Warner Music Group started a controversy during last year when their officials said that the iTunes price model (99 cents for any track) should be changed and the price for some songs should go up to $1.20. Steve Jobs replied that changing the price scheme will lure customers to illegal download services.
