Amazon.com Inc. (AMZN) Seeks Sweet Music With AutoRip

Page 1 of 2

Amazon.com Inc. (NASDAQ:AMZN) has been very active in the news since the calendar changed into 2013. We’ve covered some of those items here. And here. And here. There seems to be some positive momentum building for the company after a reported strong holiday season, which would be sweet music to investors like billionaire Jim Chanos of Kynikos.

But now, today’s news adds to that sweet music … digitally, of course.

Amazon.com, Inc. (NASDAQ:AMZN)

Amazon.com Inc. (NASDAQ:AMZN) announced a new music service called AutoRip, which is likely designed to serve as a direct competitor to the immensely popular iTunes by Apple Inc. (NASDAQ:AAPL). The goal of this new service, says Amazon, is to increase usage of its Cloud Player service and perhsp drive up music sales to take some market share away from the iTunes store.

The concept of AutoRip is to provide a digital download of a CD that users buy or have bought through Amazon.com Inc. (NASDAQ:AMZN) over the last 15 years. There are about 50,000 CDs that currently have digital versions available on Amazon – considered the most popular purchases on the site – and those digital CDs will be added to a user’s Cloud Player library for playing anytime.

“When we picked those 50,000 titles we focused on having a substantial majority of our physical CD sales covered,” said Steve Boom, head of digital music for Amazon.com. Among those titles that have free digital downloads are “Dark Side of the Moon” by Pink Floyd, “Thriller” by Michael Jackson and “Overexposed” by Maroon 5. “People will be exposed to Cloud Player and our digital music offering, which is a good thing,” Boom said. “We want to take this global.”

It is estimated that Amazon.com Inc. (NASDAQ:AMZN) owns about 15 percent of the digital music market since opening in 2007, but the Apple Inc. (NASDAQ:AAPL) iTunes store has more than 50 percent of the market.  While 15 percent is nothing to sneeze at when it comes to a growing market,  should Amazon just be working to maintain that level as the market grows?

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!