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 Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

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!