Quote:
Originally Posted by opendoor
What really upset Apple was Amazon's Daily Deal, whereby they'd sell an album for $1.99 or $3.99, but still pay the full wholesale price (which is currently around $5) to the labels. Effectively, Amazon was subsidizing $1-3 per album downloaded and taking losses in order to generate traffic to their site and their MP3 store. Participating labels and bands were also required to advertise the Daily Deals on their sites, myspace pages, etc. So effectively, Amazon was indirectly buying advertising from bands and labels and undercutting iTunes at the same time. I can understand why Apple wasn't too enthused about this and they used their clout to put a stop to it. They're not preventing labels from selling through Amazon; they're just trying to prevent the labels, for whom they've made billions of dollars and who they've basically kept afloat and relevant in the digital age, from colluding with their competition to sell music at an unsustainable price.
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So?
If it was an unsustainable business practice Amazon would go broke. Which is what Apple would want anyways.
Problem is that Amazon was creating competition in a market that Apple had up till now dominated. Apparently the crybabies at Apple didn't like that.
Doesn't matter if they sold it for less than cost. The whole point of competition is that it should benefit the consumer. Which is what Amazon was doing.