Seattle (WA) - Around 90% of customers at Amazon's digital music store had not shopped regularly at iTunes before, according to research firm NPD.

This means that people who are buying from Amazon are largely consumers who are new to the digital music download market.  Instead of trying to chip away at iTunes, Amazon is carving out an entirely new place in the music business.

Amazon launched a new digital music store last year, offering DRM-free MP3 downloads exclusively.  It has managed to get all four major record labels to come on board.  Apple also offers DRM-free tracks, but only from the EMI Music label.

NPD called this "a healthy indication that the digital music customer pool can expand into new consumer groups who have not yet joined the iTunes community," said analyst Russ Crupnick.

The Amazon digital music store has gained some new attention with its partnership with Pepsi.  Consumers can collect Pepsi bottlecaps to download free tracks from Amazon.  Pepsi previously had a long-running relationship with iTunes.

Amazon currently stands in second place in the digital music market, behind iTunes.  However, it is a distant second.  Amazon sales currently stand at around one tenth of iTunes.

lol please

Apr 15, 2008 12:28     

"This means that people who are buying from Amazon are largely consumers who are new to the digital music download market." Or, more likely, these are smart, technically savvy, experienced customers who don't want to be locked into Apple's DRM-laden iTunes-only-works-with-iPod scheme.
tgf report abuse vote down vote up Votes: +4

RE: technically savvy

Apr 15, 2008 14:29     

I agree. Anyone who buys DRM-locked songs doesn't really know what they're doing and what's available. I would never buy DRM-locked songs. What a rip-off.
Cypherdude report abuse vote down vote up Votes: +0

open it up to the rest of the world amazon.

Apr 15, 2008 16:05     

I hate that it's USA only.
wmcgritt report abuse vote down vote up Votes: +0

@wmcgritt

Apr 15, 2008 17:03     

I understand your feelings, but the US only availability (for now) be as much a legal issue as anything.
Jim L report abuse vote down vote up Votes: +0

RE: lol please

Apr 15, 2008 18:10     

Agreed on both counts: - New to digital download - Technologically savvy users who hate closed systems like iTunes
Eric report abuse vote down vote up Votes: +0

Too bad most people don't know about this great service

Apr 16, 2008 09:39     

I love this service, it now has most songs I want with no DRM strings attached. It is really too bad most people don't know about its existence and just do iTunes because that's what they have heard of. I think Amazon needs to step up advertizing for their store. Do something like the ApplePC commercials, but then AmazoniTunes. :) I personally try to promote the Amazon store through an Ad on my website http://randomweirdness.com. Maybe if more small sites and bloggers would do this it would help get the word out, since Amazon doesn't seem to do it. Some grassroots promotion might do the trick. I just want to help this service succeed and grow so I can continue to get music for myself with no strings attached. :)

Patrick report abuse vote down vote up Votes: +0