Amazon as virtual DJ by Barbora Misakova

Music companies, bands and singers, all their work and songs are closely connected to the Internet & all their repertoire and hard work can be easily sold for few cents. In 2004 when Apple and PepsiCo Inc. started to cooperate on legal music downloads and started with iTunes they job ran new way of fighting against music piracy. Now the similar fight is starting by Amazon.com. Now Pepsi is going to start a big partnership with Amazon and as they said, they are prepared to invest more on its advertising campaign than before. The first kick from Amazon and Pepsi will be done by Justin Timberlake, Grammy winner and R&B singer who will appear in Pepsi's spot. For Amazon will this arrangement mean even more as they are going to become a major music player. Amazon launched new music store and started to sell only tunes in mp3 format which can be just downloaded, burned and then played on most portable devices. Although sales of digital tracks in last year rose, album sales declined and therefore Universal Music Group, Warner Music Group and Sony BMG Music Entertainment chose Amazon instead of iTunes for selling their DRM-free songs. The basic problem was that Apple wasn't able to do anything with declining album sales, but Amazon offers a solution. While Apple's iTunes allows to download each song just for fixed price 99 Cents, Amazon allows flexibility so music companies are allowed to control sales of their virtual property. During the time when Apple and music companies will be trying to solve their mutual financial terms Amazon can take advantage of it and fix its position in the sector of virtual music industry. Market consumer who is interested in downloading DRM-free songs doesn't want any problems and complications and that's why he will use services of that virtual agent who's library will not be full of DRM-protected songs. As Amazon and Pepsi are working with the basic value which is choice, this will not only help them with achieving better position on the music market, but also allure new digital music shoppers. Lets see how Amazon manages this situation and if it is able to give better satisfaction to big music companies than Apple's iTunes.

related story: http://news.yahoo.com/s/ap/20080115/ap_on_hi_te/amazon_pepsi;_ylt=AjQS8erTFjKKra7BNUW5GKes0NUE

by Barbora Misakova for PocketNews (http://pocketnews.tv)

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