Amazon Takes On iTunes, Cuts Price of 100 MP3s To 29p

Giant e-tailer Amazon has slashed the price of 100 of its most popular MP3 tracks to a mere 30p, undercutting Apple's iTunes by a staggering 61 percent.

Amazon list of songs at 29p include current tracks like Lady Gaga's Poker face and Office favourite (at least at ITProPortal.com's towers), Use Somebody by Kings of Leon as well as a eye-watering 4773 other MP3 songs.

Apple will be hiking up the price of the latest chart hit on iTunes by 20p to 99p with some back catalogue tracks undergoing a 20p price cut. On the other hand, Amazon will be selling Albums for as little as £3.

The tracks, as always, will be devoid of any digital rights management and will work with any MP3 compatible devices. More than 5 million tracks are available from all five main record labels. The overwhelming majority of Amazon's MP3 tracks will still be sold for at 79p and are encoded at 256kbps.

Moe than 10,000 DRM-free tracks have been added per day since Amazon launched its music service bacck in December 2008.

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Our Comments

Amazon should have set up an exchange mechanism whereby Apple users who have purchased 128Kbps AAC files to upgrade for a small fee to a 256Kbps file akin to Apple's iTunes Plus. Increased competition is a good thing as long as the consumers do not end on the wrong side of the deal.

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