updated 06:05 pm EST, Fri February 17, 2006
Analysts doubt Amazon
Amazon is expected to unveil its online music service in the near future, a move that will plunge the online retailer into the digital music industry in direct competition with Apple's iTunes Music Store. Numerous analysts, however, aren't convinced the sales giant can steal Apple's luster off the line. "I don't think [Amazon's prospective store] is a threat at all," Tim Bajarin said, principal analyst with Creative Strategies. "There are a lot of things that Amazon would have to get right for this to work," Bajarin added. iTunes boasted 83 percent of the market for U.S. digital music sales in December of 2005, and reached 14 percent of the active internet in January. "I have doubts that Amazon will be able to displace the iPod's position of dominance in the market," said Tim Deal, an analyst with Technology Business Research. While Amazon could offer its own digital music player to work with its music service, analysts have their doubts the company can stand up to Apple's "coolness" factor, according to a report from TheStreet.com. Bajarin quipped "can you imagine a teenybopper bopping along to his Amazon pod or whatever? That's a stretch for me."