Why Amazon MP3 isn’t a real threat to iTunes, yet!

Yesterday I listened to the latest edition of MacBreak Weekly, number 79, and one of the things they talk a lot about was the iTunes Store vs. Amazon MP3 thing. Now as you may or may not be aware the record labels aren’t to happy with Apple’s position when negotiating with them, and have there for decided to give Amazon the upper hand by letting them sell un-DRMd MP3 files at 256 Kbps through their store. Only EMI does this thrugh iTunes with un-DRMd AAC files also at 256 Kbps. The idea is that people will clamour for the non-DRM tracks and leave Apple weakened. And it could work, but here is why it wont!

As someone on TWiT did say, iTunes gets 80% of its revenue from within the US. But still, look at where you can find iTunes music. Most of Europe, chunks of Asia, the entire North America, Australia, New Zealand and parts of South America. Where can you buy Amazon books? All over the world, if you are willing to pay for shipping and possible tarifs depending on the mood of whatever governement that day. But the MP3s can only, due to the labels not really getting it, be bought in the US. You can’t even buy them in the other Amazon stores yet, much less the non-Amazoned countries! As long as this remaines the case, and it could change quickly if someone realises, iTunes will have a good chance of withstanding the onslaught of the labels. That said, Apple is notoriously poor at realising it is not a US inly company…

Death to DRM, just say NO!

Thobias

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