Published:
25-Sep-08
The online retail giant Amazon has adapted its MP3 store to deliver music over WiFi to Android, the recently released Google Mobile Platform. The store will be provided by an Amazon branded application pre-loaded on all Android phones, which currently is limited to G1 smartphone developed by HTC for Google. The store's reliance on WiFi means that it is dependent on fixed-line communications and therefore is essentially an online music service. However, this could change with future generation of handsets and further adaptation of the store for over-the-air downloading.
Our take...
Amazon MP3 store has bucked the trend and managed to achieve a significant market share in a hardware driven music market without attaching itself to a specific device. Screen Digest believes that its success is mainly attributable to conversion of Amazon userbase accustomed to ordering physical music product via the service to buying digital music instead. Promotional give-aways of MP3 tracks and heavy discounts on certain albums also helped Amazon to augment the overall digital music market rather than cannibalize growth of other services. If Android achieves significant uptake and devices running on this platform gain a significant market share, Amazon's association with Android would strengthen the market position of Amazon MP3 store.
Amazon recently teamed up with MySpace Music, which now provides links to Amazon's MP3 downloads within the newly relaunched music service. While Screen Digest has reservations whether MySpace Music will manage to convert its audience used to 'free' music into paying customer base, Amazon's strategy of expanding its presence and raising awareness of its digital content services is important to maintaining the retailer's position on the market.
USA,
MySpace Music relaunches
