Apple’s iTunes store may be facing another deep-pocketed competitor in short order: according to the New York Post, Amazon.com is planning to launch its long-gestating online music store in mid-September. Initially, the store will feature DRM-free music in MP3 format from the major labels EMI and recent iTunes-defector Universal Music, along with DRM-free content from a number of independent labels. However, Amazon will not be offering music from labels which insist online sales must be made under cover of DRM, and that includes Sony BMG and Warner Music Group.
Selling music in the MP3 format means that the files can be played back on virtually any computer, music-capable phone, or digital music player, and can easily be transferred between computers and devices.
Amazon initially announced its plans to launch a DRM-free music store back in May. To date, Amazon hasn’t released any information on service pricing; Apple’s iTunes currently charges a premium for DRM-free music available via iTunes Plus; Wal-mart’s online music store is currently selling DRM-free music from Universal and EMI to Windows users for 94 cents a track. Industry watchers are expecting Amazon to match iTunes’ famous 99 cents per-track price for new releases and in-demand material, while possibly selling older releases and catalog content at a lower price point. Such variable pricing schemes have been at the core of major labels’ dissatisfaction with Apple’s iTunes service; although it has given some ground in a few areas (particularly album pricing), Apple has insisted that consistent per-track pricing is important to consumer adoption.
