Number two digital music retailer Amazon was given DRM-free tracks from all four majors in the hope that it would be the first real rival to iTunes' total domination of music sales. But, on top of the fact Amazon's numbers drastically pale to iTunes' (we did ask for specifics, they wouldn't spill) NPD is reporting that a mere sliver—10 percent—of Amazon's users are iTunes defectors, even though all of its DRM-less tracks will play on the iPod (or anything else). Which means Amazon isn't poaching from Apple's ecosystem, so they're either grabbing your mom (unlikely) or people who mostly avoided iTunes in the first place. Given the long, bitter fight for DRM-free music, it's simply bizarre. So if you're still buying from iTunes, why haven't you switched? [Electronista]
You don't see Amazon gift cards hanging in every check-out aisle of grocery stores, targets or wal-marts.
No mp3 player can download music straight from Amazon and then sync back to your computer.
Amazon's service is not as seamless or user friendly.
Not too many people are aware that Amazon offers a similar service. Every one who has bought an iPod knows about iTunes.
The people who really care about cheap DRM-free tracks will use P2P.
iTunes offers much more than just music. They have movies, music videos, podcasts etc. and a lot of free content. People like being able to accomplish multiple tasks with one app.
Most people set up an iTunes account when they get an iPod, and don't want to take the time to set up an account with another service.
DRM doesn't affect the vast majority of iTunes customers. If it did, I think we would see people switching over to other services.