Today Amazon decided that it wasn’t involved in enough price wars. iTunes is Amazon’s next target. Amazon started selling recent hit releases for $.69, including Katy Perry’s “E.T.”, Jennifer Lopez’s “On the Floor” and Lady Gaga’s “Born This Way.”
It has always sold some MP3s for $.69, and it has even had weekly sales. But it wasn’t until today that Amazon started selling recent hit releases for that price without calling it a sale. No, this looks permanent (unless it doesn’t work).
And I’m not sure it will. Amazon already sold MP3s for $.89 when iTunes were selling for $1.29, and yet Amazon couldn’t make a dent in Apple’s 70% of the market. Dropping the price again might not have any effect; it doesn’t seem to be a deciding factor.
In fact, I’d bet the deciding factor here is iTunes. You have to have the app (even though it is horrible
crap on Windows) to use your iPod. And the iPod dominates the MP3 player market in the US, so people are never going to stop using iTunes. Now I understand why Steve Jobs foisted that embarrassment to the software engineering profession iTunes upon us; 10 years later and he still controls the market.
image by tmray02