Jeff,
Would Apple have reduced iTunes Plus fees from $1.29 to $0.99 if Amazon didn’t offer DRM free music for less? Out of the goodness of their heart? Because they love, in Reg’s words, “delighting customers”?
I covered this on my blog back in October 07:
http://www.innerexception.com/2007/10/most-likely-reason-apple-lowered-itunes.html
The even shorter version than my post, iTunes Plus tracks at $1.29 were an inducement to the record labels to move their catalog to DRM free. When the major studios didn’t take it and instead started supplying Amazon, Apple removed the promise of higher eventual revenue to the labels.
Record companies letting Amazon sell DRM-free music at the same time as requiring that Apple keep DRM on the music that they sell, as anything /but/ unfair on Apple
I covered that on my blog in Jan 08:
http://www.innerexception.com/2008/01/bought-my-first-mp3-album-from-amazon.html
Doesn’t matter if the dominant current music store, or really digital media store, is by Apple, Microsoft, or Amazon. Being unhappy about the current situation is not Apple advocacy run amok, its a desire for a truly competitive market for all forms of digital media. The current situation is not “pure competition” as you say, it’s obvious the major labels are giving Amazon much better terms than Apple. I don’t want, nor do I think anyone who’s sane, wants iTunes as the only place to buy legal digital downloads from. I want Amazon, Zune Marketplace, anyone else that wants to have a go. As I say in my post, I may sacrifice buying DRM-free from Amazon, not because I need to prop up Apple the company, but because what I really want is DRM-free for all tracks on both iTunes, Amazon, and anyone else that comes along. Once that happens, and I am still hopeful, I would then most likely buy from iTunes for music exclusively because I think DRM-free AAC (MP4) is a better product (smaller sizes, better device battery life) than MP3s at the same bit rate. You may disagree with me on that, since MP3 is portable to every device, and MP4 is portable to most devices, you may think that is more important than what I think important. That is a truly competitive market.
But I think it is crazy to suggest that Amazon’s MP3 store is pro-consumer in the long run. The music and movie studios have always tried to add more DRM, even after its out of the bottle. DVD DRM was broken years ago, you can strip the DRM and reencode pretty freely now with Handbrake, but they went at it again with even more DRM for HD DVD and Blu-ray. Didn’t stop them then, won’t stop them with digital downloads if the labels (colluded before to price fix CDs, doing it now for DRM-free MP3s from Amazon) believe it’s in the best interest.