Amazon to start selling digital music
Amazon on Wednesday moved to shake up the online music business by setting up a direct rival to Apple’s iTunes which will sell tracks without copyright protection.
The online retailer’s decision to enter the music market could bolster the fortunes of the largest record companies. They have been desperate for an alternative to iTunes in order to gain more leverage in negotiations over pricing and other issues for the burgeoning digital market – particularly at a time when sales of compact discs are plunging.
However, their excitement about Amazon’s new service, which will debut later this year, may be tempered by its decision to sell tracks for MP3s without the so-called digital rights management, which prevents consumers from freely copying and transfer their music among a variety of devices – from iPods to personal computers and compact discs. (FINANCIAL TIMES)