Amazon Declares War: Drops Hit MP3s To 69 Cents
In recent days, the price of most track downloads in Amazon's Top 100 Singles have dropped to $.69 cents. Many of these same songs sell on iTune's for $1.29 including Katy Perry's "E.T.", Jennifer Lopez's "On the Floor" and Lady Gaga's "Born This Way." Sources tell Hypebot that the labels receive full wholesale payments with Amazon absorbing losses in an effort to attract new customers.
Amazon is stuck at about 10% market share while Apple dominates with 70% of the digital music market. "The average music consumer spends $46 a year on digital music, which is half of what it was last year," Ross Crupnick of researchers NPD told the LA Times. "The question is not whether you can sell a 69-cent track. It's whether you can get a customer to spend $69."