Seattle Office of Film + Music


APPLE AT WAR WITH AMAZON OVER MP3 “DAILY DEALS”
March 5, 2010, 1:15 pm
Filed under: Music | Tags: ,

Billboard
Since June of 2008, Amazon has been offering customers of its MP3 store a “Daily Deal,” selling a recent or classic album for a rock-bottom price. (Usually between $1.99 and $3.99) According to Billboard, Apple’s iTunes, the market leader in MP3 sales, is none too happy with the popularity of Amazon’s deals. So long as Amazon was taking the financial hit and using the deals to drive traffic to their site, no one fussed much. But last year Amazon starting working in concert with major labels to offer pre-street-date exclusives and to help raise opening week sales, and that’s left the people at Apple questioning the loyalty of those labels. “Amazon is fighting a guerrilla war against iTunes, and now iTunes is getting frustrated because they work hard to set up and promote a release weeks in advance of the street date,” a senior major-label distribution executive says, “And then lo and behold, Amazon jumps in there with this deal of the day and scrapes off some of the cream.” To read more about this issue, follow the above link.


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