Amazon mp3 at number 3?
There are rumors circulating that Amazon mp3, the month old music download store, is already at number 3 in terms of dollar revenue, blowing competition away in its wake. If this is true, and early indications are that it is, Napster, Rhapsody and Wal-Mart may be dead in the water and the current number 2, eMusic, will be running to the bathroom.
Amazon mp3 is carving out a strong position and supported by the online presence of the mothership, it is offering music downloads at lower prices than iTunes and provides a tool to easily synch with iPods. None of the music is rights managed, a trend beginning to gain momentum in the industry with DRM free downloads now available from EMI and Universal Music.
It is difficult to see any option for incumbent services but to follow suit. Amazon has some way to go before Apple quake in their boots. iTunes handles approximately 70% of all US downloads.
