Thursday, March 12, 2009

Why Amazon isn't going away, why NASA endures

A lot of digital music services have been touted as "iTunes killers." Pretty much all o fthem except maybe eMusic have failed. eMusic has a great model, but limited selection. It's never going to kill iTnes.
A lot of people had high hopes for Amazon. And they should, but not because it is going to kill iTunes, but because it will keep iTunes honest. Digital stores may come and go, but Amazon probably won't. Here's why - Amazon isn't in it to make a fortune selling MP3s. [And neither is iTunes, after all the main point to to drive purchases of iPods].
But unlike iTunes, Amazon can/should make money from MP3s, just not directly. When I go to iTunes to buy a song, or even a low riced album for $5.99 - I do just that- I buy the song, 99 cents, and leave, happy.
Amazon, and all of you Amazon junkies will attest to this, is an entirely different story. I go to Amazon to pick up Lily Allen for $1.99, remember my son wanted a new Shaun the Sheep video and that I needed a gift for my Aunt's birthday and $87.55 later I check out. And yes, I got the MP3, but Amazon had much more.

I know that iTunes has movies, books, apps, but come on. Amazon has everything, including the kitchen sink.




It has gotten to the point now where I go to Amazon first to price things (and often order) before I go anywhere else, or even go to local store.

So I don;t see Amazon getting out of the download business anytime soon- even if they sell things for $1.99, look at it as a loss leader. iTunes will have enough trouble selling enough iPods to make up for losses at $1.99, other services simply won't be able to even think about making up the losses.

I would place my bet on Amazon in the long run.



My second part today focuses on the swedish group NASA. Their album and two singles are among our top sellers this week on Amazon's MP3 pages. (click here to see). NASA still sells well even now, almost 10 years later. Part of it may have to do with some new collaboration called N.A.S.A. (David Bryne, MIA, Santigold and others working with Squeak E. Clean and DJ Zegon) Maybe some people assume that the Ninthwave album (from 1999 people!) is somehow related...Hey, I don't think people will be dissapointed.
But I think the main reason it continues to do well is that, uhm, well, it is good music. Not just good electro or synthpop, but good music, songs you could sing with juts a guitar and a campfire if you wanted to.


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