Amazon vs. iTunes? Different Target Groups?

April 23, 2008

It seems so… NPD says… see an interesting article on ars technica.

“(…) only 10 percent of Amazon MP3 customers had previously bought music through iTunes, showing that Amazon is building its own user base that is independent of the ones patronizing other stores. In fact, there are a number of demographics that differ between Amazon MP3 and iTunes users, NPD says. Amazon has a stronger following among male users (64 percent, compared to iTunes’ 44 percent), although iTunes is more popular among teenagers between 13 and 17 (18 percent, compared to Amazon’s measly three percent).”

On first sight and thought: People with no iPods, new in the digital world, normally ordering cds… discover music as download…. and buy at amazon? But what happens then?

Why should I stay at Amazon?

Besides the “hardware factor”, what could be a lock in effect for a music service that makes sense?
Just a brand ” well known from the analog world”, will not be enough…
Context? Community? Recommendation Systems? Subscriptions? Hardware bundle?
Anything else?

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