Just weeks after launch, a number of labels are saying privately that they believe Amazon has jumped to #3 in download sales for their releases. eMusic and iTunes hold the #2 and #1 spots respectively.
Amazon could be #2 by year's end for some labels if measured by dollars paid instead of the number of tracks downloaded, according to at least one prediction. Amazon pays labels far more per track downloaded than eMusic's subscription model.
If true, Amazon's instant success is not great news for Rhapsody, Zune, Napster and other download services who have invested millions of dollars over the last several years to gain market share.
Amazon also announced last week that it will pay affiliated sites 20% through the end of the year on mp3 sales then drop to 10%. Even at 10% the pay out is twice the 5% that iTunes pays its affiliates.
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