QOTD: apple and amazon


There is an interesting story in the WSJ about Amazon’s plans to take on Apple in the music download business. The story is framed by the context of a move from atoms to bits. That is from CDs, DVDs and books which comprise a large part of Amazon sales to digital downloads.

The move is crucial for the Seattle-based retailer’s long-term strategy. Despite offering a vast array of products from gourmet coffee to garden hoses, Amazon depended on physical media like CDs, DVDs and books for 70% of its 2005 sales. To maintain its dominant position, Amazon will need to hang on to consumers as they migrate to digital delivery of those products. [ – Amazon Plans Music Service To Rival iTunes]

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