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Amazon.com Launches "Amazon MP3" Music Download Store

— September 25, 2007 — Business
Ready to take on Apple's iTunes, Amazon.com Inc has launched its digital music download named store named "Amazon MP3” Most songs are priced from 89 cents to 99 cents, with more than half of the 2 million songs priced at 89 cents

Implications - Since Napster went corporate, people have been trying to find other ways to get free music. However, iTunes has made it once again acceptable to pay for music. Apple's success has created intense competition, spawning programs such as Spotify and Amazon MP3. With consumers willing to purchase music (digitally, at least), it is possible that more retail outlets will come up with online versions of their stores.
Trend Themes
1. Digital Music Stores - The rise of digital music stores such as Amazon MP3 and Spotify creates opportunities for disruptive innovation in music distribution and marketing.
2. Affordable Music Pricing - The pricing strategy for Amazon MP3 and other digital music stores of offering songs at affordable prices from 89 cents opens up opportunities for disruptive innovation in music distribution.
3. Online Retail Stores - More retail outlets are likely to adopt an online version of their stores after the success of online music stores such as Amazon MP3.
Industry Implications
1. Music Industry - The music industry can take advantage of digital music stores and affordable music pricing to reach out to more consumers and provide innovative music marketing strategies.
2. Retail Industry - Retail industry entrepreneurs can replicate the Amazon MP3 pricing strategy and use online platforms to reach more customers and disrupt the traditional brick and mortar retail.
3. Technology Industry - The technology industry can provide the necessary infrastructure to improve the efficiency of digital music stores and enhance customer experience.
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