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In Case You Were Wondering How Amazon and Apple Felt About Each Other

Amazon MP3 Store has a promotion called Daily Deal, where they prominently highlight an album that'll rake in sales for cheap—in exchange, labels have been giving them a one-day exclusive before the street date. Surprise, iTunes got pissed.

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For example, Amazon sold Mariah Carey's "Memoirs of an Imperfect Angel" for $6 and Vampire Weekend's "Contra" for $4, both a day before the street date in a Daily Deal promo. So, after telling labels it wasn't the wisest move to give Amazon any kind of exclusive window over iTunes, iTunes has apparently been pulling marketing support for music featured in Amazon's Daily Deals. Acording to Billboard, record labels Capitol and Jive backed out of Amazon Daily Deal promos they were considering for artists like Ke$ha, and Hollywood Records turned down Amazon's offer entirely to do a Daily Deal on Nick Jonas' new album, as result.

Amazon and Apple have been fighting it out over music for years—Amazon beat iTunes to being DRM-free, largely because labels feared iTunes' massive influence over the industry, given the iPod's 70 percent marketshare. So, they hoped to build up a credible threat in Amazon (which is why it's not entirely surprising to see them still give Amazon some favorable treatment, since it's essentially the MP3 store the labels built). Now with books in the content mix, it's even more tense. Though when it comes to publishing, the shoe's on the other foot: The publishers are flocking to Apple because they're afraid of Amazon, who commands between 80 and 90 percent of the ebook market.

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Admittedly, part of the reason I hope Amazon eventually does buy Netflix is to make the fight over content even bloodier, like a proper gladiatorial deathmatch. [Billboard via Techmeme]

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DISCUSSION

It is sad that Apple has so few friends these days and everyone is beating up on their insanely great products. We feel your pain, Steve.

So, I thought that Apple didn't make any money from music sales, right? And the Amazon music download feature works nicely with iPod hardware which allows Apple to continue to make their profits. So, what gives? Is this a pissing match or is Apple not owning up to hidden profits on their iTunes music sales? I am not talking about the percentage of the buck, but are they profiting somehow by keeping their customers tied into Apple's store? Call me a conspiracy theorist, but Steve's words and his actions are not exactly matching up here. Crazy - I know.