Amazon UK kicks off low-end price scuffle with iTunes

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Anonymous Coward

Stunt #

Posted Tuesday 7th April 2009 14:32 GMT

This 29p thing is just a publicity stunt by Amazon to coincide with Apple's new price structure.

Just 0.002% of Amazon's tracks are at the 29p price-point, and no doubt only temporarily, because after the record industry and artist cuts, there can't be much if any money left.

The record industry has long wanted variable pricing in iTunes, but Apple has pushed to keep flat-rate pricing, which is simpler all round.

Finally though, in return for the Record Labels allowing Apple to sell DRM-free tracks, Apple has given in and bowed to the variable pricing conditions.

It's no secret that the Record Industry doesn't like Apple's dominance in the market, so giving preferential treatment (lower-prices and DRM-free) to alternative retailers is seen as a way to reduce Apple's majority market share.

The way this is being reported by the mainstream media you'd think Apple are deliberately increasing their prices at exactly the same time as Amazon is lowering theirs.

In reality, Apple's pricing is governed by the Record Labels, and Amazon's temporary promotional price on a handful of tracks is a well-timed, loss-leading, publicity stunt.

Martin Lyne

I #

Posted Tuesday 7th April 2009 14:32 GMT

I didn't even know Amazon did MP3 downloads, they'll be getting some of my money if it's DRM free and doesn't require invasive software.

Mark Wills

Bonus #

Posted Tuesday 7th April 2009 14:32 GMT

I'm struggling to remember how much 7" singles cost in the UK in the mid 80's when I was a teenager. I seem to recall buying Do They Know It's Christmas, and West End Girls and Money For Nothing* and other such 80's greatness for 99p.

That means buying tracks on line is now cheaper than it was 25 years ago.

That's progress, as much as we all like to bash the record companies.

Having said that, I can also remember getting my YTS money on a Friday, (the princely sum £17.50 for a weeks work IIRC) and going up to Rainbow Records in Shrewsbury with my hard earned to buy an album. The rest I would give to my mum. Bless her.

I still have some of those albums, with the price tag on them. Chris Rea, Mike Oldfield (Crises - great album), Stevie Ray Vaughan**, all £5.95.

Still some ways to go on the album prices me thinks!

* other great 80's tracks are available

** other great 80's bands are available. But not Kajagoogoo. They were shit. And Dollar.

adamd

Rip Off Britain Etc #

Posted Tuesday 7th April 2009 14:32 GMT

Here in Amsterdam I bought a track* off the NL iTunes earlier for the "can't bothered to download the torrent at that price!" price of EURO 0.69. Which is about 61p. Plus they have albums for under 7 Euros. Rip it up and start again Britain! On the downside, Amazon politely decline to sell me MP3s online from their store, even though I have offered to show my UK passport. Oh yes, and we are still waiting for the iPlayer to come here. Hurry up!

*Yes, thanks for asking, it was Planet Claire, by the excellent B-52s.

Jim Cosser

Amazon Top it #

Posted Tuesday 7th April 2009 14:51 GMT

It may just be a stunt and short lived re: 29p tracks but I've used amazon a fair bit for MP3s and they have been V. competitively priced with no DRM and high quality.

No DRM and cheap, why would you use iTunes again? I think Apple needed some serious competition to kick them into gear and this might do it.

Liam Thom