Amazon MP3 has little or no effect on iTunes
According to a new study by The NPD Group, only 10 percent of all purchasers at Amazon mp3 are converts from Apple's service, while the rest are switching from other services or new to the whole direct-download music scene.
While 10 percent may sound like a lot to us ordinary folks, it wasn't worth the eyebrow raise of a single analyst.
The bottom line is, if Amazon mp3 sees itself as the David to iTunes' Goliath, then their work is definitely cut out for them. Amazon currently sits in fourth place in US music sales, with iTunes and Wal-Mart fighting it out for the top spot, and Best Buy in third.
The troubling statistic for Amazon is that only a tenth of their music sales come from Amazon mp3. The rest come from those archaic compact discs; if you don't know what we're talking about, check out your parent's music collection-maybe they have some laying around.
The question is, my friends, what is keeping Amazon mp3 from biting into sales on iTunes? Is it the poor browsing experience? Is it because Amazon is seen as outside of the iTunes-iPod ecosystem? Are people willing to part with 10 cents more, and put up with DRM, for the sake of iTunes simplicity?