Apple may have a problem here.. Amazon launches MP3 store which is set to steal iTunes’s thunder. Two major reasons why this is likely to happen

1. Songs in Amazon are priced at a low 89 cents (10% cheaper than iTunes)
2. They are DRM free

So what is DRM?

DRM is an acronym for Digital Rights Management, a broad term used to describe a number of techniques for restricting the free use and transfer of digital content. DRM is used in a number of media, but is most commonly found in video and music files.

Apple uses this technique .. and therefore songs that are being sold in iTunes can be shared with up to 5 computers and can only be played on iTunes/iPod. Whereas songs purchased from Amazon can be played on any device including personal computer, MP3 player and mobile phone.

On top of the above reasons, some users (I am one of them ) are experiencing faster download and music preview through Amazon MP3. Although iTunes is currently offering more than 6 millions songs compare to Amazon’s 2.3 mil, Amazon is catching up.

Good luck Apple!

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