Amazon and iTunes get aggressive in promotional pricing

by mattdentler
August 25, 2009 12:54 PM
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Writing for Video Business, Jennifer Netherby looks at some of the ways in which portals like iTunes and Amazon VOD are slashing prices for special promotions. We've explored regular discount promotions on Amazon VOD, and will soon do the same on iTunes, and I gotta say: we've seen great results in overall sales. In addition, it's great to encourage consumers to use these services, which are very easy to access for the uninitiated. From Netherby's article:

Other competitors—CinemaNow, Blockbuster, Vudu, etc.—haven’t been as aggressive, running fewer promotions and mostly pricing new releases above $17 and sticking to the typical $9.99 price tag on catalog downloads and $2.99 rental price for older films that has been the de facto industry standard across movie download sites and among VOD operators.

Blockbuster offers some catalog film downloads for $9.99 and new release downloads for $17.99. Vudu sells new release downloads for $14.99 to $19.99.

Amazon has been aggressively competing with iTunes in the digital music space, slashing prices of albums and singles in its MP3 store to try to grab market share from iTunes, FutureSource analyst David Sidebottom said.

“I wouldn’t be surprised if they did the same on the video side,” he said. However, Sidebottom doesn’t think Amazon will be as aggressive in video as the site has been in music because studio deals might limit discounting to some extent and because video tends to be higher priced than music. [Ed. Note: not necessarily for the indie players]

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