Record label distribution executives say the situation could be even worse for Amazon than reported. According to them, Amazon maintains just 6 to 10 percent of the market in any given week, while Apple hovers at closer to 90 percent.
Though Amazon's "daily deals," where it sells albums for as low as $3.99, have seen modest success, the online retail giant reportedly takes a loss on each "deal" sold. People familiar with the matter told the Journal that Amazon often still pays the full wholesale price, usually $7 to $8, for its daily bargains.
Not sure why they even bother. Music is such a low margin item. I guess it pulls visitors to the site and I guess that must result in increased sales across the other sectors.
The author of this article clearly doesn't understand statistical analytics, as they apply to markets.
a 63% to 66% market share is 3% gain, but "JUST" a 4.7% improvement. (3 / 63 = 4.7)
While a 14% to 16% share is a 2% market gain, but is a 14.29% improvement. (2 / 14 = 14.29)
As an investor I'd MUCH rather have those that improve by 14.29% than 4.7%. Investors make money on relative market share gains, not on whole market share gains.
For example, If I invest in Apple, and its iTunes market share gain goes from 63% to 66%, that gain is very small compared to its current revenue, so its stock value won't be highly affected. But, if I invest in any competitor who has a much smaller starting market share, they're going to experience a much more significant revenue increase even considering slightly smaller gains. This is why investors take big risk on startups and market under-dogs.
I think that's nonsense. We're not talking about relative market share gain between closely matched competitors. Apple already dominates the market. So their gain of 3% is out of an available 37%. Amazon's gain of 2% is out of an available 86%. Now which is more impressive?
I think that's nonsense. We're not talking about relative market share gain between closely matched competitors. Apple already dominates the market. So their gain of 3% is out of an available 37%. Amazon's gain of 2% is out of an available 86%. Now which is more impressive?
Both, as it depends entirely on what near-meaningless metric you're measuring by.
It means exactly what I think it means. Another one you may want to look up is "self-awareness."
Yeah, see, the problem being that you were getting jacked up over allegations that hadn't been made. I don't get jacked up over allegations that haven't been made. I get jacked up over things like "fan boys suck Jobs' dick" and the like.
I almost bought an Album from Amazon because it was cheaper than iTunes, as I jumped through hoops in the sign up process and downloaded and installed their software then as I'm not in America, it wouldn't let me get it, switched me to Australia where the Album was the same price, so fired up iTunes, a couple of clicks later and was done.
Deleted all their crap, hope they don't send me no spam.
How is this any different than Apple not letting people purchase from the foreign iTunes stores? That's right, there isn't any. Of course you alway moan about anything that isn't Apple
and i have no problem downloading mp3's from amazon.
i prefer amazon because they are cheaper than itunes.
.
Quote:
Originally Posted by hill60
I almost bought an Album from Amazon because it was cheaper than iTunes, as I jumped through hoops in the sign up process and downloaded and installed their software then as I'm not in America, it wouldn't let me get it, switched me to Australia where the Album was the same price, so fired up iTunes, a couple of clicks later and was done.
Deleted all their crap, hope they don't send me no spam.
Comments
The irony.
I don't think that word means what you think it does.
Record label distribution executives say the situation could be even worse for Amazon than reported. According to them, Amazon maintains just 6 to 10 percent of the market in any given week, while Apple hovers at closer to 90 percent.
Though Amazon's "daily deals," where it sells albums for as low as $3.99, have seen modest success, the online retail giant reportedly takes a loss on each "deal" sold. People familiar with the matter told the Journal that Amazon often still pays the full wholesale price, usually $7 to $8, for its daily bargains.
Not sure why they even bother. Music is such a low margin item. I guess it pulls visitors to the site and I guess that must result in increased sales across the other sectors.
The author of this article clearly doesn't understand statistical analytics, as they apply to markets.
a 63% to 66% market share is 3% gain, but "JUST" a 4.7% improvement. (3 / 63 = 4.7)
While a 14% to 16% share is a 2% market gain, but is a 14.29% improvement. (2 / 14 = 14.29)
As an investor I'd MUCH rather have those that improve by 14.29% than 4.7%. Investors make money on relative market share gains, not on whole market share gains.
For example, If I invest in Apple, and its iTunes market share gain goes from 63% to 66%, that gain is very small compared to its current revenue, so its stock value won't be highly affected. But, if I invest in any competitor who has a much smaller starting market share, they're going to experience a much more significant revenue increase even considering slightly smaller gains. This is why investors take big risk on startups and market under-dogs.
I think that's nonsense. We're not talking about relative market share gain between closely matched competitors. Apple already dominates the market. So their gain of 3% is out of an available 37%. Amazon's gain of 2% is out of an available 86%. Now which is more impressive?
I don't think that word means what you think it does.
It means exactly what I think it means. Another one you may want to look up is "self-awareness."
I think that's nonsense. We're not talking about relative market share gain between closely matched competitors. Apple already dominates the market. So their gain of 3% is out of an available 37%. Amazon's gain of 2% is out of an available 86%. Now which is more impressive?
Both, as it depends entirely on what near-meaningless metric you're measuring by.
Or did ai want to say "download"?
At least someone else here understands the difference...
Both, as it depends entirely on what near-meaningless metric you're measuring by.
OK, so you can willfully misinterpret any numbers thrown at you. Good for you.
OK, so you can willfully misinterpret any numbers thrown at you. Good for you.
You're almost getting it.
The only analog audio equipment I have left are my ears!
and your speaker/headphones.
It means exactly what I think it means. Another one you may want to look up is "self-awareness."
Yeah, see, the problem being that you were getting jacked up over allegations that hadn't been made. I don't get jacked up over allegations that haven't been made. I get jacked up over things like "fan boys suck Jobs' dick" and the like.
See the difference? I bet you don't.
I almost bought an Album from Amazon because it was cheaper than iTunes, as I jumped through hoops in the sign up process and downloaded and installed their software then as I'm not in America, it wouldn't let me get it, switched me to Australia where the Album was the same price, so fired up iTunes, a couple of clicks later and was done.
Deleted all their crap, hope they don't send me no spam.
How is this any different than Apple not letting people purchase from the foreign iTunes stores? That's right, there isn't any. Of course you alway moan about anything that isn't Apple
i prefer amazon because they are cheaper than itunes.
.
I almost bought an Album from Amazon because it was cheaper than iTunes, as I jumped through hoops in the sign up process and downloaded and installed their software then as I'm not in America, it wouldn't let me get it, switched me to Australia where the Album was the same price, so fired up iTunes, a couple of clicks later and was done.
Deleted all their crap, hope they don't send me no spam.
and i have no problem downloading mp3's from amazon.
i prefer amazon because they are cheaper than itunes.
.
I use EMusic...cheaper than BOTH Itunes and Amazon!