Amazon MP3 Vs. iTunes Music Store
Ali writes "As discussed here recently, amazon.com has launched a public beta of Amazon MP3, a digital music store that provides DRM-free downloads of over 2 million songs from 180,000 artists and 20,000 labels. In comparison, Apple says the iTunes Store now contains over 6 million songs. Here is a head-to-head comparison."
"Better to be vulgar than non-existent" -Bev Henson
The problem with that, and maybe with the whole amazon gig is the profit margin issue. My impression, perhaps I'm wrong, was that apple was pocketing less than a dime a song for itunes music store.
Current estimates are about a dime, with "wholesale cost" (i.e. the label's cut) being about $0.70 for majors and $0.60-65 for independents.
The rest of the cost is supposed to be comprosed of infrastructure, operational expenses, and transaction fees from the credit card companies. I'll eat my own shoes if Amazon's costs aren't lower. They're largely reusing a pre-existing retail infrastructure. And as a major retail operation, they doubtless have a ton of clout with the credit card companies (which are commonly cited as having the next biggest cut after the labels).
Presumably this is not too server lite either since I'm guessing the songs are watermarked with your ID and then MP3 compressed.
Nope. The songs are being provided encoded by the labels and the only watermarks identify the retailer, not the purchaser. Bandwidth would be the predominant cost here.
Oh come on now.
With this offering, Amazon has done more to make Linux a first-class citizen in the online music space than maybe any other company to date. That's hardly "lock[ing] out Linux users."
Read my blog.