There is an interesting story in the WSJ about Amazon’s plans to take on Apple in the music download business. The story is framed by the context of a move from atoms to bits. That is from CDs, DVDs and books which comprise a large part of Amazon sales to digital downloads.
The move is crucial for the Seattle-based retailer’s long-term strategy. Despite offering a vast array of products from gourmet coffee to garden hoses, Amazon depended on physical media like CDs, DVDs and books for 70% of its 2005 sales. To maintain its dominant position, Amazon will need to hang on to consumers as they migrate to digital delivery of those products. [WSJ.com – Amazon Plans Music Service To Rival iTunes]