Buy.com may challenge iTune and start selling music online

July 17, 2003

GristyMcFisty used our news submit to tell us
that online retailer Buy.com is planning to announce the launch of a new
music download service. The service will probably be like the Apple iTunes site,
where users pay per track and do not need to pay a monthly fee. It is not sure
if Buy.com has closed any deals with the record labels. The service would be
available to Windows PC users.

The
launch of the service, first reported in the San Jose Mercury News,
is expected to coincide with a $40 million promotional campaign in New
York's Times Square, the newspaper said.

Like Apple's iTunes Music Store, Buy.com will
sell individual music tracks without collecting an up-front monthly
subscription fee, even though it has yet to secure licensed music from all
five major record labels, the newspaper said.

Stores like Buy.com probably know better then
anyone else what consumers want, they also have experience with handeling
customer support and how to market their products. Also they know how to beat
their competition. These are all things record labels have nothing to do with in
their daily business. Stores like Buy.com could be a good option for them to
boost online music sales. Read more here.

Source: CNN.com