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[quote Billybob](most people can't distinguish CD quality from MP3 when the bitrate is 192k or above
I have some things for you to consider as you make that investment of money and belief:
"Most people" are never properly exposed to better alternatives, leading to "general consensus" conclusions that assume too much and downplay or deny one's natural abilities to make fine distinctions --- making it socially "OK" to accept something that their gut tells them stands at least a chance of being the worse bargain somehow. Of course, not knowing --- or caring --- that much plays a huge role in any purchasing decision, as always.
Nothing's free, and that includes a digital format that throws away roughly 80% of the original data in return for a small file size and a "best guess" algorithm.
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One thing I really liked was the pricing on some of their classical albums. Symphony=4 movements=4 tracks = $3.96. Big differential from CDs or iTunes. And if I do not like the quality, I did not waste much. Nice way to put some of the albums I have on SACD and DVD-A onto iPod.
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...there are tons of technologies and services that were also for real, when they existed.
Amazon may be a blip on the radar now, but not a big player yet, and they may not make it in the long run.
Of course, not making money for years has been an Amazon strategy.
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I agree with the Fools.com article as well. The new service isn't about Apple, it's about Amazon.com.
It is still early yet, and I doubt that Amazon is making money from MP3 downloads now or ever. But like Apple uses its ITMS to move iPods, Amazon.com's cheaper downloads will increase traffic to Amazon.com in general. Increased traffic is always good for business.
The MP3 download service is not about making money selling music, it's about generating traffic. If Amazon.com can keep music prices down, which may be difficult, then it will be a huge music seller, but more importantly, it should increase Amazon.com revenues period as more people buy other products -- and iPods -- on Amazon.com rather than elsewhere.
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I don't like the way the site is organized (but I don't like how the rest of Amazon is organized either). Of the music I can't get from the ITMS, none of it is available from Amazon either. I am glad the quality of the music is higher on Amazon, and I prefer the .mp3 format.
