Amazon MP3 and Android, Sitting In a Tree...

[Darius Wey]

<div class='os_post_top_link'><a href='http://phx.corporate-ir.net/phoenix.zhtml?c=176060&p=irol-newsArticle&ID=1199843' target='_blank'>http://phx.corporate-ir.net/phoenix...icle&ID=1199843</a><br /><br /></div><p><em>"Amazon.com, Inc. (NASDAQ: AMZN) today announced that the Amazon MP3 music store will be pre-loaded on the T-Mobile G1, the world's first Android(TM)-powered mobile phone in partnership with Google. T-Mobile G1 users can search, download, buy and play music from Amazon MP3, which offers over 6 million DRM-free MP3 songs from all four major music labels and thousands of independent labels that can be played on virtually any hardware device and managed with any music software. "Amazon wants to make it easy for customers to discover, buy, and play their music wherever they happen to be--whether sitting at their computer or on the go," said Bill Carr, Amazon.com Vice President for Digital Music and Video. "We look forward to the release of the T-Mobile G1, which will put Amazon MP3's vast selection of low-priced DRM-free music at the fingertips of even more customers in more places." The T-Mobile G1 comes pre-loaded with an Amazon MP3 application, giving customers a phone-optimized version of the Amazon MP3 store and the immediate gratification of buying and playing their favorite music. Amazon MP3 has worked to make its DRM-free music available through numerous products and services, such as Pandora MySpace Music, and now Android and T-Mobile G1."</em></p><p><img src="http://images.thoughtsmedia.com/resizer/thumbs/size/600/spt/auto/1222179694.usr2.jpg" /></p><p>The mobile music downloads market just got a lot more interesting with Amazon.com announcing the availability of the Amazon MP3 music store on the Android-powered T-Mobile G1. Its biggest rival is, of course, the iTunes Store on the iPhone and iPod touch, followed by the Zune Marketplace on the Zune. However, Amazon MP3 trumps one or both in a few areas: (a) all tracks are DRM-free; (b) most content is better-priced; and (c) tracks can be browsed, previewed, and purchased on the T-Mobile network, and later downloaded via Wi-Fi.</p><p>What can Microsoft and Apple conjure to match or beat this?</p>

[Adam Krebs]

What can Microsoft and Apple conjure to match or beat this?

Answer: Offer a subscription service so users don't have to pay-per-track. I really think the combination of wireless/subscription is an incredibly powerful one, and that goes beyond just "I'm in the mood to buy a song." The subscription allows you to do so guilt and cost-free.

[efjay]

The down side of a subscription is when you arent buying songs you are still paying for the subscription and paying for a service you arent using.

[Jason Dunn]

The down side of a subscription is when you arent buying songs you are still paying for the subscription and paying for a service you arent using.

That would only be true if you weren't listening to ANY of the music you downloaded, which is pretty unlikely. But I suppose, yes, if you were on a vacation for a month and didn't listen to any music, you'd be paying $15 for nothing. But how often would that happen to most people? :)

[Jason Dunn]

Wow, this is pretty big news! I think it's a massive coup for Amazon, not because of this one phone, but if they set a precedent and it works out well, other carriers are going to want to do the same thing. And it's not like Apple is going to create iTunes clients for other mobile platforms...

[efjay]

That would only be true if you weren't listening to ANY of the music you downloaded, which is pretty unlikely. But I suppose, yes, if you were on a vacation for a month and didn't listen to any music, you'd be paying $15 for nothing. But how often would that happen to most people? :)

I am obviously not the target market for subscription music - I typically buy a music track online maybe twice every 6 months so from my standpoint a subscription service is not suitable for my needs. I actually already use Amazon's mp3 downloads and am happy with the $.99 price for each of the 3 songs I have downloaded this year. So if this came to WM I would be inclined to use it as is, but not on a subscription basis.

[inteller]

Amazon needs to consider some branding. When I hear the name Amazon, music doesn't come to mind. They need a brand like Zune or Napster. Simply sticking Amazon in front of all of their offerings is cheesy.

[Phillip Dyson]

That would only be true if you weren't listening to ANY of the music you downloaded, which is pretty unlikely. But I suppose, yes, if you were on a vacation for a month and didn't listen to any music, you'd be paying $15 for nothing. But how often would that happen to most people? :)

Well, I think this scenario actually favors the purchaser over the subscriber. If I buy a music track. I can listen to it as often as I like. vacation or not. For free.

As a subscriber, sure I can download for free, but it costs me to listen. And it continues to cost me to listen to the track I downloaded, say 3 months ago.

[efjay]

Well, I think this scenario actually favors the purchaser over the subscriber. If I buy a music track. I can listen to it as often as I like. vacation or not. For free.

As a subscriber, sure I can download for free, but it costs me to listen. And it continues to cost me to listen to the track I downloaded, say 3 months ago.

Is this it works, you dont actually own the music when you subscribe but can only listen to it online? I thought when you subscribe you are actually able to download and own any number of tracks for the subscription price.

[Jason Dunn]

Well, I think this scenario actually favors the purchaser over the subscriber. If I buy a music track. I can listen to it as often as I like. vacation or not. For free.

Yes, that's one of the factors that determines whether subscription music is a good fit for people or not: if you're the kind of person who loves discovering new music, and listening to new artists constantly, subscription music is a great fit. If you're the kind of person who only buys six CDs a year, and tends to listen to the same music over and over, then subscription music is not a good fit for you. :)

[Jason Dunn]

Is this it works, you dont actually own the music when you subscribe but can only listen to it online? I thought when you subscribe you are actually able to download and own any number of tracks for the subscription price.

You can download it all, and listen to it for at least 30 days without requiring a license renewal - so you can take it with you on vacation. Although I think Philip's point was that you couldn't download new music. Although that's not entirely true either, if you take a laptop with you, or a Zune, you could still get new music.

[dp]

Sorry, folks, but Amazon's mp3 operation is already bigger than Zune. It's iTunes, Amazon, Rhapsody. Zune is not much of a competitor.

[Phillip Dyson]

I wouldn't mind an Amazon MP3 App on my Windows Mobile phone. That would be great.

[Darius Wey]

Sorry, folks, but Amazon's mp3 operation is already bigger than Zune. It's iTunes, Amazon, Rhapsody. Zune is not much of a competitor.

I'm confused after reading your post title. Nobody did explicitly mention that Zune was in second place.

Also, note that we're talking about mobile music downloads, not just general music downloads in the US market. There's a huge difference. Only the iTunes Store, Zune Marketplace, and now Amazon MP3, are part of self-contained ecosystems that include a single store with a mobile storefront and a single line of mobile devices. I wouldn't count Rhapsody To Go, because at the end of the day, it lacks that essential mobile storefront, and it requires a BYO device - keep in mind that the iPod isn't one of them, so that's effectively a huge chunk of potential users out of the picture.

[Rocco Augusto]

Sorry, folks, but Amazon's mp3 operation is already bigger than Zune. It's iTunes, Amazon, Rhapsody. Zune is not much of a competitor.

I wouldn't say it isn't a competitor. I know a fair amount of individuals that purchase music through Zune Marketplace. I purchase a fair amount of Drum and Bass singles from the Zune Marketplace because I will find them non-DRM'd there weeks or months before Amazon and other services. On the other hand, for other MP3 purchases, I usually go to Amazon first. :)

[inteller]

what I wish is that I could get non-DRM WMA. mp3 is inefficient junk.

[dp]

I'm confused after reading your post title. Nobody did explicitly mention that Zune was in second place.

Darius, any attempt to reframe the competition so that no one else counts (it has to be a store, and mobile, and have its own device, and..., and... Is Zune disqualified for being on open Wifi networks only? Disqualifying Rhapsody because it doesn't work with iTunes but not disqualifying Zune for the same reason -- that put me on the floor laughing in pain.) is laughable and irrelevant to anyone actually looking at the competition in the marketplace. There are several mobile music store competitors that are likewise irrelevant: Vcast, etc...

[dp]

I wouldn't say it isn't a competitor. I know a fair amount of individuals that purchase music through Zune Marketplace. I purchase a fair amount of Drum and Bass singles from the Zune Marketplace because I will find them non-DRM'd there weeks or months before Amazon and other services. On the other hand, for other MP3 purchases, I usually go to Amazon first. :)

Oooh, the editor of a Zune site knows people who have purchased from Zune Marketplace? Wow. Who said no one has ever bought from the ZM? I said no one is really treating the Zune as legitimate competition between the biggies. Hilarious how you admit that you yourself prefer to go to Amazon instead of Zune.

[Jason Dunn]

what I wish is that I could get non-DRM WMA. mp3 is inefficient junk.

If you're talking strictly about the efficiency of the codec, yes, WMA is a more efficient psycho-acoustic model. WMA allows lower bit-rate music to sound better because it's more efficient. But at what cost? MP3 is more compatible, and at sufficient bit-rates (256 kbps and higher) the advantages of WMA fade away rapidly. WMA is great for when you have limited storage, but that's not a problem in most cases any more...

[Darius Wey]

Darius, any attempt to reframe the competition so that no one else counts (it has to be a store, and mobile, and have its own device, and..., and... Is Zune disqualified for being on open Wifi networks only? Disqualifying Rhapsody because it doesn't work with iTunes but not disqualifying Zune for the same reason -- that put me on the floor laughing in pain.) is laughable and irrelevant to anyone actually looking at the competition in the marketplace. There are several mobile music store competitors that are likewise irrelevant: Vcast, etc...

dp, you've taken my post out of context.

Let's go back to basics. There's a market for everything: white vehicles, black vehicles, high-performance vehicles, vehicles in general, bread, jam, cereal, food in general, you get the idea. Now, let's revisit my original post. Notice that I explicitly mentioned "mobile music downloads" - that is, OTA music downloads on your mobile device. This is (or, at least, was supposed to be) the thread's focus. I'm certainly not denying that a market exists for general music downloads nor am I denying that competition in this market is widespread and fierce. I certainly do acknowledge that, and for such a market, I recognise that Rhapsody and many others are formidable forces.

If I wanted to break the mobile music downloads market down even further into regions and look at those outside the US, I'd probably drop Amazon.com, Zune, and many others off the list, leaving just iTunes and a few no-namers as the leaders. The point is, each is a market in itself, and each has its own set of participants.

At the end of the day, I do believe we're debating two completely different points, and it's probably not worth taking this further. ;)

[timbevil]

The down side of a subscription is when you arent buying songs you are still paying for the subscription and paying for a service you arent using.

Ridiculous comment. I have about 5,000 subscription songs downloaded--all downloaded in less than four weeks. Guess that "down time" I'm not downloading is really wasteful. Maybe I'll spend my time listening to new music to take my mind off of the money I'm losing by not constanting downloading subscription tracks.