Amazon Invests In Potential iTunes Rival
August 6, 2007 at 11:13 AM (PT)
A variety of media are reporting that AMAZON has begun to financially support a potential competitor to iTUNES. INTERNETNEWS.COM, among other sources, report that AMAZON.COM has invested an undisclosed sum into the completion of Series A financing for AMIESTREET.COM, a digital music store that prices tracks by demand.
All songs initially available on AMIESTREET.COM can be downloaded at no charge. One more and more customers download that song, its price increases to a maximum of 98 cents. AMIESTREET.COM chief marketing officer and cofounder JOSHUA BOLTUCH told the site that the bottom line is generating word-of-mouth popularity. Users who recommend music to their friends get credit to buy more songs on the site; the amount of credit is determined by the popularity of the recommendation.
I can't speak on behalf of Amazon, but Jeff [Bezos] thought our model and approach was very interesting
According to PC WORLD, most of AMIESTREET.COM's income is generated through sharing revenue from music sales. Its website clams that up to 70 percent of the price of a song or album goes to the artist. There is no information on exactly ho many songs have been sold, or if the company is profitable.
Nevertheless, BOLTUCH has discussed the business model with AMAZON CEO JEFF BEZOS. "I can't speak on behalf of AMAZON," BOLTUCH told INTERNETNEWS.COM, "but JEFF thought our model and approach was very interesting."
For its part, AMAZON has already announced that its own music store will launch by the end of the year. So far, it has deals with EMI GROUP and a large number of independent labels for content.