Amazon and Google are both reportedly in talks with music industry executives about developing their own respective digital music services. The market is utterly dominated by Apple Computer's iTunes
music store, which claims a 70-80 percent share of the digital music market. According to a
Financial Times report, senior music executives welcome the idea of new competition in a market that
has failed to produce any serious challengers to Apple. One unnamed music industry CEO reported "active communications" with both companies in the last 60 days. "I do believe Amazon and Google will do
something serious," he said, adding that Amazon looks set to launch something as early as the second quarter of this year. Meanwhile Google has deflected all rumors linking it to a possible move for
Napster, maintaining it has "no plans at this time" to develop a music store. Major record labels are eager for some stronger competition in digital music to help lock in better prices for them; music
executives have long complained about Apple's model of charging 99 cents per track as holding back the market. They'd like to see more flexible pricing--such as the ability to charge a cheaper rate
for promotions or out-of-favor tracks while charging premiums for hits and longer songs. They'd also like to see songs delivered to other devices besides the iPod.
Read the whole story at Financial Times »