Amazon to challenge Apple

Posted in Companies, MP3 Players, Retail on February 21st, 2006

Amazon is planning to sell digital music players and music, similar to Apple. Amazon has an uphill battle to challenge Apple, which commands 65-75% of digital music player and music sales.

Amazon has a few assets and creative ideas in its favor.
* Amazon boasts an existing huge base of 55 million customers, many of who already buy CDs from the retailer
* Amazon already sells about 10% of all digital music players in the U.S., including Apple iPods.
* Amazon would offer a subscription service with unlimited rentals like Napster and RealNetwork, different from Apple iTunes dollar downloads.
* Amazon could bundle players and music and offer the player for free in exchange for a subscription contract, similar to how cell phones are sold.
* The players could even come preloaded with music
* Another subscription bonus – discounted CDs



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