Amazon’s new MP3 store is anything but bad for Apple

“What’s that? Amazon opened a music store? Oh, OK. (Resumes snoring),” Time Beyers writes for The Motley Fool.

“Nine of the 10 best-selling MP3 players at Amazon are iPods. That’s why you’re not seeing Jeff Bezos chatting up alternatives from SanDisk or nearby Microsoft,” Beyers writes.

“Chances are those tracks will be downloaded into one of the 110 million or so iPods out there today,” Beyers writes. “Bezos knows that; he’s no moron. And he knows that Apple doesn’t need him for distribution. Would CEO Steve Jobs pull the iPod from Amazon’s digital shelves? Probably not, but it’s enough to know that he could.”

“More than 3 billion songs have been sold via the iTunes store. Assuming Apple retains no more than $0.05 to $0.10 per song, that’s roughly $150 million to $300 million in revenue over four-and-a-half years of sales,” Beyers writes. “By contrast, the iEmpire [Apple] collected more than $22.6 billion in revenue over the trailing 12 months alone.”

Beyers writes, “So let’s take Amazon’s $0.89-a-song-strategery for what it is: great for consumers. And anything but bad for Apple.”

More in the full article, including four of Apple’s primary advantages when it comes to the iPod, here.

88 Comments

  1. Walt has been off the farm for a while but it’s good to see an old friend coming home.
    In his article, “Apple’s iPod Touch Is a Beauty of a Player Short on Battery Life”, he proceeds to tear into the fancy toy! Moss’y has been away from Job’s Reality Distortion Field just long enough to start seeing the truth: Apple has less marketshare so it’s products are inferior.

    http://fakesteveballmer.blogspot.com/2007/09/mossberg-disses-ipud-touched.html

  2. @ @MacTech84

    First off, yes I do know that the majority of people do not like hard hitting bass. If you have read anything on this forum you would have read its a competition car. And I enjoy my ears. But there are times I do turn it up while driving and will continue to annoy R-Tards like you because I simply can!!!. For the most part I give a lot of respect to the people who deserve it, for those stupid people out there, like you who cannot come up with an original name to use here. I have no respect as you often say things before thinking about them, and should have probably been eaten at birth.

  3. @Scientific Fact

    Wow, that is the best you could do??? the bass to genital size jokes are dead. And do you know what sarcasm is by chance? oh wait you probably think with your wiener. And since you do not know what sarcasm is, its probably a good bet that you have a small one. Ooops I just made the same joke, see how DUMB and STUPID it is. Way to go there R-Tard

  4. “the bass to genital size jokes are dead.”

    It’s not a joke. it’s scientific fact. I can understand why it might upset you, but you know exactly what everybody near you is thinking whenever you crank up the bass in your car, that you have a Small Dick.

  5. @ Paul Johnson

    > Amazon’s web-based interface will match the elegance of iTunes and iPod because it works WITH iTunes, allowing users to download into iTunes.

    The elegance is NOT that the songs are DRM-free and therefore work with iTunes. That’s called compatibility. The elegance is that iTunes Store and iPod work together with no additional effort from the user. If I download from a web-site, I have then go find the file and move it into iTunes. At best (if iTunes is set to copy the song file to the library folder), this is a four step process: download song, navigate to find song file, drop song file onto iTunes window, delete original downloaded file. With the iTunes Store, it’s one step and your done. For me, downloading from a web-site would be OK. But for a high percentage of users, it would make a difference in deciding which service to use.

  6. @ Capitalisim

    > They could supply Apple DRM’d tracks only at a high price to drive people away from iTunes. They could let others reach a certain level of sales and popularity then pull the plug on their contracts with iTunes.

    You’re right. The labels can do what they want. But they WON’T raise the price because Apple owns “the store” and Apple can set the selling price it wants. If the cost of merchandise happens to be too high, Apple won’t sell from that supplier. It’s obvious that no music label is willing to be excluded from the best store. And if DRM-free songs become reasonably successful, they WILL eventually sell through iTunes at the “going” price because the music industry is not controlled by one mind. One key player will break, and the rest will follow to avoid being left out. Apple IS controlled by one mind with the end-game already plotted. One clever mind will always out-maneuver a “committee” composed of members who are competing against each other.

    But Apple wins either way. If Apple continues to sell DRM’ed songs at 99-cents, it can complete with Amazon selling non-DRM’d songs at 99-cents. Why? Because the most popular online store is iTunes and the most popular music player is iPod. For most people who use iPod and iTunes, DRM is not relevant, because they never run into the DRM restrictions in day-to-day use (I don’t). It’s effectively invisible. So if the price is the same, they’ll still prefer the elegance of using the iTunes Store with their iPods.

  7. Interesting, that Amazon’s stock is down 4 percent.

    What’s that sound I hear? Bezos crying in his cornflakes?

    Give them some time to work out the kinks in their store, and Amazon and Apple will become the unstoppable juggernaught to bring an end to DRM. And then watch the iPods sell!

  8. @Scientific Fact

    Ohh did I hurt someone’s feelings!!!! Get over the fact that I have pissed you off. It takes a small mind to go after someone’s genitals when they cant think of anything else to say. Besides your mom didn’t complain last night. OH I went there. Do you see how stupid this is, and you are for keeping it going. If you cant take the heat then don’t post. Go try Extenze or something from those weird commercials if you are that insecure with yourself.

  9. @ken1w @ johnson

    Ken, my heart is with you, but my head tells me that this is kind of thinking that got Apple into trouble in the mid-90s. I really do believe that most American consumers look almost exclusively at the price, as long as the difference in effort is not overwhelming. One-step vs. three steps doesn’t seem overwhelming.

  10. “Ohh did I hurt someone’s feelings!!!!”

    No, No hurt feelings, but you do need to understand, people with car stereos like yours are just presumed by the public to have small genitals.

    If you can live with sending that message when you crank up the volume, and manage to successfully tell yourself that that’s not what people are thinking, that’s fine.

    But it won’t actually change what people are thinking.

  11. “If I download from a web-site, I have then go find the file and move it into iTunes”

    Not with the Amazon store, it automatically downloads and installs it just like iTunes. Sounds like they got over your major objection to people using the store.

    “If Apple continues to sell DRM’ed songs at 99-cents, it can complete with Amazon selling non-DRM’d songs at 99-cents”

    You are aware Amazon sells non DRMed songs for 89 cents and Apple sells them for $1.29? Right?

    It’ll be interesting to see Apple’s next move. I’ll bet that it’s not that they force Amazon to raise the price of non DRMed songs to $1.29.

  12. “Besides your mom didn’t complain last night. OH I went there.”

    What can I say? My Mom has a thing for taking the virginity of guys with small dicks. However she said she would have liked more than three strokes before you blew your load. Nevertheless she found your sexual clumsiness charming. Go Figure.

  13. @ @84

    People can presume and go with whatever helps them get through the day. If you have learned anything from this stupidity is that I do not care what people think or presume. I listen to my music in my car how I want to, when I want to, and it is my own space. If people want to think big bass, small genitals they can, its just ignorance on their behalf. They can’t directly come at me, so they come up with a stupid idea and again if this is the best you can do on here. I really do pity you.

  14. @ @84

    Give it up really, you think you want to get to me, don’t be such an R-Tard and think you can be the bigger man here. If you cant think for yourself and come up with an original joke or idea… Go crawl back up into your mom, and pray that the process can start over again. You don’t need new jokes you need a life!!!

    P.S. Am I getting to you yet =)

  15. “its just ignorance on their behalf.”

    See that’s not what my Mom said, she said that you have the smallest dick she’s ever seen.

    As you pointed out I know someone who has actual knowledge of your genital size.

    “I listen to my music in my car how I want to,”

    As we said, as long as you understand you’re telling the whole world you have a small dick.

  16. MacTech84 sounds hot! In Belgium when a man drives around with his car stereo up loud with thumping bass it serves as a signal to other gay men that you’re on the prowl. Then the hookup is made at a highway rest stop. Grrrrrrrr MacTech84! I would love a rendez-vous for some hot and heavy thumping humping with you if your penis wasn’t so miniscule. Such is life. Don’t worry about sending me a picture, MacTech84. Your tiny penis kills it for me. I like a BIG man.

  17. @ @84

    Lol, you seriously have no other come backs, this is great, while you get all riled up over this crap, I am just going to laugh at you. If you have not noticed, once again R-Tard, you are not getting to me. You have no new material and I have apparently gotten to you, as you can only come back with one thing. Pathetic!

    @ Claude from Belgium

    Wow, you are just a sucker like the other. If the only thing you have to come at me with is my bass makes me have small genitals, and now apparently gay! then damn. You need to get some lives and originality. But good luck with your endeavor and “Big men” as it will just give you a bigger anus to shove your head into and @84. Have fun with that guys.

    Just to point out since this has gotten way off topic to discuss my genitals. If anyone is actually reading the full threads. My original point was that the AAC codec, aka .m4a, is much better, and cleaner than MP3. As I have proven you can compete with a digital music player and compressed algorithms vs. the original CD.

  18. “while you get all riled up over this crap, I am just going to laugh at you. “

    For some reason I think the positions are reversed.

    “As I have proven you can compete with a digital music player and compressed algorithms vs. the original CD.”

    Only if you play them on a crappy system. Play them on a good system the difference is immediately obvious.

    So not only do you have a small dick, but the car stereo you brought to compensate sucks too. Talk about a 2 time looser.

  19. @ 84

    Really if you are going to keep the trash talk going, new material buddy. Are you just so fascinated with discussing my genitals that you are becoming enthralled with them? Also are you really that stupid with the AAC codec as well? Again instead of going after me, you go after my car. Here is a special link for you buddy, enjoy…

    Just out of curiosity? Did you win that race?

  20. @84

    I almost forgot, read the very last line of the link, its really tiny print so you might have to get a magnifying lens to see it. Just like trying to find your wiener. Oh! you see that was just lame R-Tard. New Stuff please….

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