“Steep discounts are a cornerstone of Amazon’s strategy to gain traction in a market in which iTunes remains the dominant player. At the same time, a debate has arisen among music labels about whether such discounts risk undermining the value of their products,” Ethan Smith and Geoffrey A. Fowler report for The Wall Street Journal.
“Despite its cut-throat pricing, Amazon has made little headway against Apple, which closely ties its iTunes software to its iPods and other gadgets,” Smith and Fowler report. “Amazon’s share of the paid digital-download market rose to 13.3% in the third quarter, from 11% the year earlier, according to estimates from research firm NPD Group. Meanwhile, iTunes’ share rose to 66.2%, from 63.2%.”
Smith and Fowler report,” Distribution executives at record labels say the disparity between the two may be even steeper, with Amazon commanding just 6% to 10% of the market in any given week, and Apple closer to 90%.”
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