Digital Audio Insider -- the economics of music and other digital content

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Digital Audio Insider is David Harrell's blog about the economics of music and other digital content. I write from the perspective of a musican who has self-released four albums with the indie rock band the Layaways.

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April 04, 2008

Amazon.com mp3 vs. iTunes
by David Harrell

When it first launched, direct comparisons of the Amazon.com mp3 store with Apple's iTunes store were difficult, largely because of major differences in their respective catalogs. (Amazon launched without any titles from Warner Music Group or Sony BMG.) Several months later, there's much more overlap between the two stores.

Here's what the top-20 digital albums looked like for both stores on Wednesday morning, April 2nd:
Amazon.com mp3/iTunes sales comparison

It's a 50% overlap, with 10 titles appearing on both lists. Of the non-overlapping iTunes titles, all except the pre-order of Madonna's "Hard Candy" are available from Amazon.com mp3, while the NIN Ghosts release (#6 at Amazon.com) isn't sold in iTunes. Hence, it seems likely that the major differences -- at least at the top of the digital album charts --- are more likely the result of customer habits, demographics, and prices, as opposed to product availability.

As for prices, across the board, all 10 overlapping best sellers were cheaper at Amazon.com. Nine of the albums are selling for $8.99 and one title is $9.99, for an average Amazon.com price of $9.09. Over at iTunes, the album prices range from $9.99 to $14.99, with an average iTunes price of $11.59 for these 10 albums.

However, to be fair, it's not exactly an, uh, apples-to-Apple comparison: Only four of the 10 titles contained the exact same track lineup. (And two of those iTunes albums feature a digital booklet in addition to the music.) The iTunes versions of the remaining six of the albums each feature at least one bonus track, while two also included a video and three featured digital booklets.

So iTunes purchasers are in most cases getting something extra for their additional dollars, though the relative value of that bonus content varies. The most egregious pricing differential is probably the two versions of R.E.M.'s Accelerate, where iTunes purchasers are essentially paying an extra $5 to receive a digital booklet. On the other hand, for an extra three bucks, buyers of the iTunes version of the new Counting Crows album receive two bonus tracks, a 20-minute video interview, and a digital booklet.

Keep in mind this was a pretty simple comparison, based on a single point in time for two charts that update throughout the day. But I'll check back every month or so, if only to keep an eye on the general pricing trends.

tags: digital music digital album prices iTunes Apple AAPL Amazon.com mp3 AMZN

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THE LAYAWAYS

Out Now -- "Maybe Next Year" -- The New Holiday Album:

"This is a sweet treat, deliciously musical without being overbaked for mass media consumption." -- Hyperbolium

"Perfect listening to accompany whatever holiday preparations you may be making today." -- Bag of Songs

O Christmas Tree - free mp3 lyrics and song details
Away In A Manger - free mp3

Download from eMusic, iTunes, Amazon MP3, or Bandcamp. Listen to free streams at Last.fm.

"...about as melodic and hooky as indie pop can get." -- Absolute Powerpop

"Their laid-back, '60s era sounds are absolutely delightening." -- 3hive

"...melodic, garage-influenced shoegaze." -- RCRD LBL

Where The Conversation Ends - free mp3
January - free mp3
Keep It To Yourself - free mp3

Download from eMusic, iTunes, Amazon MP3, or CD Baby, stream it at Last.fm or Napster.

"The Layaways make fine indie pop. Hushed vocals interweave with understated buzzing guitars. The whole LP is a revelation from the start." -- Lost Music

"Catchy Guided by Voices-like rockers who lay it on sweetly and sincerely, just like Lionel Richie." -- WRUV Radio

Silence - free mp3 lyrics and song details
The Long Night - free mp3

Download from eMusic, Amazon MP3, or iTunes, stream it at Last.fm, Napster, or Rhapsody.

"These are songs that you want to take home with you, curl up with, hold them close -- and pray that they are still with you when you wake up." -- The Big Takeover

Let Me In - free mp3
Ocean Blue - free mp3

Download from eMusic, Amazon MP3, or iTunes, stream it at Last.fm, Napster, or Rhapsody.

More Layaways downloads:

the layaways website