How Amazon Undercuts Apple

May 1, 2011 0

Amazon lowered the price of hot pop songs currently available at the company’s online store.

According to the L.A. Times, Amazon has slashed big-sellers like Katy Perry’s “E.T.”, Jennifer Lopez’s “On the Floor” and Lady Gaga’s “Born This Way” from 89 cents to 69 cents. Apple sells the same singles on iTunes for $1.29.

This move by Amazon strikes at Apple’s tiered pricing system, which maintains a 99-cent price tag for most songs and ups the price of popular tracks. As noted by MacRumors, if you find a 69-cent song on iTunes, it’s typically “older back catalog material” instead of a current chart-topper.

While the Amazon’s new deal may entice buyers, it’s unlikely that we’ll see iTunes prices change, given that Apple commands 69 percent of the digital download market.

So as an artist you get 31% of your iTunes sells, and Im sure you don’t actually get all of that because your label takes their cut. Wow I can’t say Apple ripping people off because iTunes is in every country and caters to the millions of iPods, iPhones, iPads, and iTunes users out there. You would definitely want to reach those customers but only to see 31%???? I don’t know.

Yeah Amazon is lowering their price to draw more traffic but for every one song downloaded off iTUnes its damn near equivalent to two songs downloaded off amazon. Im not sure if I would go out of my way to buy a song off amazon when iTunes store is built in to my iPhone and iPad.

Visit Amazon’s MP3 store and check out these deals for yourself.

 

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