Wednesday, 10 December 2008

Price War Erupts In The Online Music Market

A price war in the online music market has erupted, after retailer Amazon launched a download service offering albums for just £3 and Apple's iTunes Store slashed the price of some albums.

Amazon's new store, which is understood to include loss-leading promotions, appeared on its website overnight with no pre-launch publicity, substantially undercutting the prices of Apple.

The Amazon shop's lowest price of 59p per song is 20p less than Apple's iTunes's offers. The current number one album in the music charts, The Circus, by Take That, is being sold for £3 by Amazon and £8.99 by Apple.

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