Amazon rolling music service and audio players?

In today's market you can just give the fine people at LoudEye a ring and have them whip you up a nice PlaysForSure online music store branded with your logo and copy, filled with all the latest chartbusters. And we're not sure if that's what Amazon's actually up to, but according to the Wall Street Journal they're apparently in "advanced talks" with four global music companies about setting up shop with their own iTunes Music Store competitor -- one supposedly to be built to be used with originally designed Amazon-branded audio players that would come preloaded with tracks and have discounted bundle packages for Amazon's music subscription service (yes, it's fair to say this is going to be YAPFSS -- yet another PlaysForSure service). But being Amazon, they could also be liable to take advantage of their more brick and mortar than Napster online storefront and offer discounted CD prices to subscribers of their service, which the WSJ notes could all be launched as early as summer.

[Matt @ Feb 16th 2006 9:20AM]

*Yawn*. Until any of these download services start using better quality files, I'm not even remotely interested. For an extra $3 you can buy un-DRMd albums at a MUCH higher quality than you'll find from Napster, iTunes, etc. It shocks me that anyone uses the online stores for anything other than exclusives.

[JT @ Feb 16th 2006 9:50AM]

Too little, too late...

[Gizmo @ Feb 16th 2006 9:55AM]

But..didn't the RIAA say that shipping players pre-loaded with music was a crime against humanity? What's a 210lb gorilla like Amazon to do?

[BRYAN @ Feb 16th 2006 9:58AM]

I love Yahoo Music Unlimited (YAPFSS). If Amazon can make this type of service better, then more power to them. Subscription service are the way of the future. If you havent tried it, you are realy missing out on somthing pretty amazing. I smile when I hear people talk about how much they have spent on Itunes. I agree with Matt #1. If you want to own the music...buy the CD and skip the lossy format and DRM. If you want to listen to MP3's... $5 a month for everything you could think of and more is a steal.

[Louis @ Feb 16th 2006 10:10AM]

I agree with your sentiments, BRYAN, but there are three points that make the iTMS compelling:

1) You own an iPod (yea, yea, I know, not everyone owns an iPod yet)
2) You don't WANT to spend $3 per track, as Matt suggested.
3) You don't want the whole album (the world of one hit wonders awaits at the iTMS)

You can think of it this way; there are people with hundreds of CDs, which translates into thousands spent on music. If instead they selectively bought those tracks they liked, they might be able to save thousands of dollars. For some people that is a compelling aspect of the iTMS.

Now the question is, "If they want to spend less, why not use something like Yahoo! Music Engine?"

That one I can't answer, since I've never used it. Can a Mac user access the Yahoo! Music Engine?

[JinKazama @ Feb 16th 2006 10:29AM]

I just can't get into this whole subscription thing...

#1 - I prefer to buy the CD because I like to to have a "hard copy" so to speak of my music. Who knows where tech is going and 30 years from now I don't want all my classic albums stuck on at obsolete mp3 player

#2 - Half the artists out today aren't worth a full purchase. itunes has actually reduced my spending on music. Normally if I liked a song or two I'd buy the album and realized the other 10 songs sucked. With itunes I can pick and choose and preview the songs before I buy.

[Jason @ Feb 16th 2006 10:44AM]

I think this could be interesting... My ideal solution from Amazon would be as follows: Like many others, I prefer to have a hard copy, yet there I times I want the music as fast as possible. With Amazon already physically shipping tons of CD's, it'd be nice if they offered to ship the physical CD when you buy a download. In order to keep prices low for pure downloads, perhaps they could offer it for a couple of dollars extra.

[BRYAN @ Feb 16th 2006 10:54AM]

The tracks on Yahoo are only $0.79 to purchase (give you burning privileges, and will never expire). Not $3. I don't know about the mac options. Rhapsody is another YAPFSS, and they offer a preview (20 song) of the subscriptions service to anyone and everyone. All you have to do is create a basic (free) account, and you can listen to the 20 tracks of your choosing per month. It better than the yahoo or Napster trials that require a "paying" account for their trials.

[Frank @ Feb 16th 2006 11:13AM]

It's obvious that there will be flatrates for audio and video content. It's easier that way and Amazon would have a nice steady income.
"Owning" a DVD or CD is certainly a thing of the past when there is plenty of communication bandwidth to download (or stream) media content instantly.
Amazon is a big player and has plenty of (spending) power to steal away iTunes users.
However, I fail to see why Amazon wishes to sell their own brand of media players. This strategy would limit the amount of users, especially during the introductory phase.
One question: recently I had a look at Songbird, rather nice and very much iTunes like. Is there any non-iTunes software out there that can link to an iPod?
In other words: would it be possible for Amazon to reach iPod owners using some sort of synchronizing software?

[Matt @ Feb 16th 2006 11:17AM]

I meant $3 per album, not per song in post #1. Most CDs are $13 or so, as opposed to $10 on the online stores. If you're looking for a full album, the extra $3 for the CD is a much better buy.

[alex ray stenerson @ Feb 16th 2006 11:49AM]

i think it looks like a very generi mp3 player with a not even fuly color screen

[Ben @ Feb 16th 2006 12:32PM]

If this goes as well as Amazons TV made for Internet count me out. Amazons knows how to spend money but doing it right is something they lack right now.

[tung @ Feb 16th 2006 1:52PM]

i agree. too late...
apple has all the infrastructure in place.

[DM @ Feb 16th 2006 3:05PM]

"Furthermore, what these imbeciles don't understand, is that if Apple really wanted to, it could flick ONE switch and offer a subscription based service too! DUH!"

Hey Jarod (aka Apple f***boy) will you STFU once and for all? If Apple really could do it that easily, why aren't they? Is it because they want to lag behind the competition?

And who are you anyway to spread rumours as if they are fact? Do you work at apple? Are you steve jobs' shitpot cleaner?

[x23 @ Feb 16th 2006 6:07PM]

"Hey Jarod (aka Apple f***boy) will you STFU once and for all? If Apple really could do it that easily, why aren't they? Is it because they want to lag behind the competition?"

apple is lagging behind the competition? got some numbers to back that up?

could be the reason apple hasn't done it is because there really isn't that great of demand at this point in time. if there was... more people would be using the 'other' services.

thanks.

[Azi @ Feb 16th 2006 6:29PM]

They can't use any other service because they were all stupid enough to buy an ipod. All they can use is iTunes.

Fell right in to the trap.

[Vaibhav Domkundwar - iNods.com @ Feb 16th 2006 8:05PM]

Amazon has shown that they understand their customers much better than most other retailers and I am infact excited to see what they come up with. Thier device may not be as cool as the iPod, but there are tons of value seekers out there who will be happy with a more economical, more open, more un-locked music device and service than iTunes. If the Amazon player can work with Songbirds of the world, still better.

Another aspects is that Amazon has a LOT of leverage to cross-sell and combine discounts and offers from its range of products, which can make the whole service more attractive. iTunes still has that closed-Apple-world kind of a feeling, for a number of people.

Nevertheless, it will be an interesting thing to watch and I am rooting for Amazonian Tunes. More here: http://www.webvapors.com/?p=41

[Louis @ Feb 16th 2006 10:02PM]

"Thier device may not be as cool as the iPod, but there are tons of value seekers out there who will be happy with a more economical, more open, more un-locked music device and service than iTunes."

Explain to me what's more economical than a $299 30gb iPod? Creative's 30gb Vision:M is $330 at Amazon, while the iAudio 30gb X5 is $290.

[Pablo @ Feb 17th 2006 1:04AM]

Hey Jarod -- Get back in your cage...like Apple's core business was selling music. Using your logic Apple should never even developed the iPod.

Also, Amazon's core business is selling digital content...I read that something like 70% of their revenue comes from selling movies and music. It is obvious that selling physical media going downhill and they are doing what any good business would do...follow the money.

[Frank @ Feb 17th 2006 3:23AM]

This Amazon concept is not new!
The russian company Allofmp3 already offers a 15$/month subscription which grants you a 1000 downloads per month... Nicely payable by creditcard or PayPal. They have over 20.000 albums in 320 kbps quality. In case you want only 1 album: $ 1.50 :-)

http://www.allofmp3.com/

Thus, it seems to me that setting up a subscription service is the only thing Amazon can do. They can't join Apple iTunes Store, can't join Sony Connect Store (which is utter crap anyway) etc.
Here in Germany the T-Mobile company offers the www.musicload.de service, which is doing very well and more and more media (telephone, cable, DSL etc) companies are offering similar services.
Concerning this Amazon mp3 player, this would, I guess, solve any DRM problems, simply by setting it up like Apple did with iTunes.

Well, I certainly think that this subscription based service from Amazon could be a big hit!
Especially in the US.

[DM @ Feb 17th 2006 6:13AM]

#16 "apple is lagging behind the competition? got some numbers to back that up?"

I meant that apple WONT be able to get a headstart in the subscription industry if they dont start offering those services now (actually its already quite late, napster has been offering subscription downloads for quite a while)

#19 "Explain to me what's more economical than a $299 30gb iPod? Creative's 30gb Vision:M is $330 at Amazon, while the iAudio 30gb X5 is $290."

While the ipods have definitely have more "value for money" now, they have stopped including many basic accessories, like a wall charger, dock (not so basic) but whatever, you get my point...

[Greg @ Feb 17th 2006 10:05AM]

The problem is kids like the fact of having an iPod today. Not for the music, but just to say they have one...Sooner or later Apple will come out with something new for everyone to have. I doubt kids will walk around saying "I have an amazon player...and I pay 3$ for media!" Not happening, im content with my iPod video. Not becuase its an iPod, but because of what it can do.

[Louis @ Feb 17th 2006 10:12AM]

DM: Yes, I get your point. Some people don't like iPods because they are some of the most popular MP3 players, not because they are more expensive, not because they don't work well, and not because they offer less features.

It's the same reason why some Mac and Linux users hate Microsoft and Windows, after all.

[jason @ Feb 17th 2006 6:32PM]

Great to see Amazon entering the fray. I posted on their possible entry into the branded service and device space last month:

http://uf911.blogspot.com/2006/01/what-is-amazon-up-to-with-lab126.html

For those who think that Apple has the digital music market all locked up, just answer this question - are all your digital music needs currently met? If you think the answer might be 'yes', then I guess you're fine with discovering new (not yet purchased) music on your desktop/laptop, and carrying only the music you've already discovered and purchased on your device. The rest of us are still waiting for the music discovery and playback experiences to be merged and made available on a mobile device.

j