Amazon's MP3s not affecting iTunes

From CNET

Amazon.com's MP3 service is growing but not at the expense of Apple's iTunes, according to a report issued Tuesday by market researcher NPD Group. About 10 percent of the people who shopped at AmazonMP3 in February were previous Apple shoppers, NPD said.

Apple's iTunes remains the No.1 digital music store. AmazonMP3, which launched in September, slipped past Wal-Mart to take over the No. 2 spot in February when comparing the individual music tracks downloaded by consumers in the U.S., according to NPD.

The big question now is whether Amazon can continue to grow without snatching away customers from Apple.

Amazon has at least one major advantage over Apple: Apple's DRM-free tracks are available only from EMI Music, while Amazon offers unprotected MP3s from all four of the major record labels. Also, Amazon sells digital music at a higher bit rate and its songs are often cheaper.

But Amazon has a long way to go, says NPD. MP3 sales at iTunes are more than 10 times larger than at Amazon, the research firm said.

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