When Amazon Destroys iTunes in Pricing... What Do You Do?


Consumers used to go to Apple's iTunes because it was easier, cheaper and more effecient. Now compared to Amazon, it is is neither cheaper nor easier... Now I buy my music directly through Amazon (as a cd no less!). The top selling album on iTunes is Michael Buble's latest. It costs 14.99 on iTunes as compared to 9.99 on amazon. That's a dramatic difference and there are dozens of other examples for popular and smaller titles alike. When iTunes falls behind on pricing, is it still worth the experience? It certainly satisfies the immediacy (even if amazon will arrive in 24-48 hours). But it loses on all else: the price is 50% greater, the finding experience is worse and the reviews are generally better on amazon. On the mobile front (where these screenshots are from), the experience is even more differentiated between the two.

When pricing is the same, iTunes wins on immediacy - but amazon has shown time and time again the ability to compete on pricing and find value downstream for the users / purchases. And unless iTunes adds some big value-add and compelling reason why I need to buy there (like Facebook connect), pricing remains critical.... And if you read the reviews, users agree (they are giving buble's album a poor rating because of the iTunes price).