Amazon (AMZN) Flexes Digital Music Muscle Against iTunes with New Service (AAPL)
Tweet
Share
E-mailGet Alerts AMZN Hot Sheet
Join SI Premium – FREE
Amazon.com (Nasdaq: AMZN) may be taking broader shots at one of Apple's (Nasdaq: AAPL) key cash cows with its latest offering.
According to a release earlier in the session, Amazon is debuting its new AutoRip service. With AutoRip, customers will be able to get free MP3 versions of CDs they purchase from Amazon. The MP3 version of the CD will be automatically added to the users Cloud Player library and available free of charge.
This isn't just a feature for users moving forward; Amazon said any purchases from 1998 on will be available in Cloud Player libraries. That includes over 50,000 albums.
Though it might not seem like it at first, the move is a direct hit to iTunes. Amazon has only about 15 percent of the digital music business and hopes this new effort will bring users back to Amazon for future music purchases. iTunes is currently the de facto leader when it comes to digital music, having more than 250 million accounts.
Of course, Amazon wants to steal market share from more than just Apple. But, if you're going to aim for something, aim for the top.
Shares of Amazon are down 0.3 percent Thursday.
According to a release earlier in the session, Amazon is debuting its new AutoRip service. With AutoRip, customers will be able to get free MP3 versions of CDs they purchase from Amazon. The MP3 version of the CD will be automatically added to the users Cloud Player library and available free of charge.
This isn't just a feature for users moving forward; Amazon said any purchases from 1998 on will be available in Cloud Player libraries. That includes over 50,000 albums.
Though it might not seem like it at first, the move is a direct hit to iTunes. Amazon has only about 15 percent of the digital music business and hopes this new effort will bring users back to Amazon for future music purchases. iTunes is currently the de facto leader when it comes to digital music, having more than 250 million accounts.
Of course, Amazon wants to steal market share from more than just Apple. But, if you're going to aim for something, aim for the top.
Shares of Amazon are down 0.3 percent Thursday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Amazon (AMZN) Introduces Low-Cost Grocery Delivery Subscription
- Threshold to make it into the Top 100 biggest global companies is now at $141B - report
- GE Aerospace (GE) beats on top and bottom lines in Q1, hikes profit outlook
Create E-mail Alert Related Categories
Corporate News, Insiders' BlogSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
