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The launch of of Amazon’s DRM-free MP3 store in UK would most probably trigger a price war not only between Amazon and Apple, but would also affect startups that retail MP3 music in the UK. 7Digital, an MP3 retail startup in UK thinks that Amazon’s entry is a little too late, however TechCrunch UK has differing views:
Ben Drury, CEO 7digital has come out with some some strong views on Amazon’s entry. He calls it “a little late”, although it was only on September 16th that 7digital went fully MP3. But the store is selling high quality 320kps, unlike Amazon’s which are at 256kps quality.
7digital may find that its business is adversely affected by Amazon, especially on price. Perhaps its emphasis on higher qality will help it find a niche? The startup is backed by Sutton Place Managers and Balderton Capital to the tune of $8.5m.

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