When Amazon launched its Amazon MP3 online music store last year, the company offered a radically different formula from that of Apple's iTunes Store: music from all major record labels in high-bitrate, digital-rights-management-free, MP3 format, but with similar (and in some cases lower) pricing than Apple. Surprisingly, News.com quotes a study by market research firm NPD Group that says Amazon MP3 isn't taking many customers away from the iPod maker's service.
According to NPD, only 10% of users who purchased music at Amazon MP3 in February were previous iTunes Store customers, despite the fact that Amazon's MP3 tracks play on Apple's iPods. Yet even without stealing away Apple's customer base, NPD says Amazon MP3 eclipsed Wal-Mart to become the number two online vendor of individual music tracks in February.
These numbers are a "healthy indication that the digital music customer pool can expand into new consumer groups who have not yet joined the iTunes community," NPD concludes. Of course, Amazon still has a long way to go before catching up to Apple—the iTunes Store's music sales are ten times those of Amazon MP3, NPD adds.
- Mac Pros could emit carcinogenic fumes[128]
- Microsoft prolongs XP downgrades to July 2009?[85]
- Intel's top-of-the-line Core i7 could be a screamer[84]
- 'Asset smart' unfurls, AMD spins off foundry business[76]
- Apple to make next MacBooks with space-age process?[75]
- Apple threatens to shut iTunes if artist royalties increase[58]
- TR Forum Tidings: What do you look for in PC games?[58]