Quote:
Originally Posted by sclitheroe
Really, it was Amazon that precipitated the whole thing - they got the labels to kowtow to their marketing scheme (although more likely it was the reverse), causing injury to another one of their strategic partners, and a very important one at that, Apple.
What exactly did the labels think would happen?
Overall, it’s all part of the cat and mouse game of industry. Nobody broke any rules, did anything deceptive, etc, everyone kept making money, and the consumer did not loose the ability to choose where they bought their music or what music was available.
Ultimately, fundamentally, it’s all been a net positive for online music consumers - we’ve got higher bitrates, no DRM, more selection, more places to get the selection from, etc.
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In that case, Amazon should be commended for coming up with a marketing strategy where they attracted more business than the next company.
Is it their fault that they were being smart?
In a 'true' free market Apple should have turned around and come up with something that draws people back to their music store. Instead they used their power to force Amazon to stop a business practice that was creating competition for Apple.
Like I said, bunch of crybabies. If by offering the daily deal you attract more customers to your music store and they end up buying a lot of other music, that would be a good business policy. I'm sure Amazon ran all the numbers and found out that it benefited them to offer subsidized music in certain cases.
I don't understand why Apple would hate competition. They've shown the ability to make better products and offer better services(customer service especially)...than a lot of other companies. When they came up with the iPhone they jumped into a huge mobile market. Sure, there wasn't a phone on the market that was similar to the iPhone but that is exactly the point. Apple came up with something WAY better than anything someone else could make. Including RIM.
One would think other companies getting in the fold would be a GOOD thing, considering it encourages everyone to do things better.