Apple 2.0: Amazon vs. Apple: Why Are the Songs So Cheap? (Business 2.0 Beta)

On hearing the news that Amazon (AMZN) had put 2 million songs, free of copy-protection, for sale on its new MP3 music store, I -- like nearly everyone else who writes about Apple (AAPL) -- went straight to the site to do a cost-comparison with the iTunes Music Store. My choice: KT Kunstall's new album, Drastic Fantastic, $9.99 or $14.99 (for the Deluxe Edition) on iTunes, $8.99 on Amazon. Savings: from 10% to 40%.

Which raises an immediate question: why are they doing this?

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