Amazon MP3 quietly follows iTunes with pricing changes

Apple took a lot of heat for its roll out of tiered pricing on iTunes this week, which raised the price of some popular tracks from 99 cents to $1.29. Now it seems Amazon.com is quietly following Apple's lead. Amazon's MP3 store now charges $1.29 for some songs.

Asked about the Amazon MP3 price tweaks, Amazon spokeswoman Cinthia Portugal responded, "As with any product on Amazon.com, product pricing is subject to change," but she didn't shed any light on the company's decision.

Analyst Matt Rosoff, who first noted Amazon's move in his Cnet blog, expressed surprise that Amazon was raising MP3 prices now, given that it's been slashing digital music prices in the U.K. as part of a special promotion.

"I can't imagine Amazon's excited about raising prices in a recession -- they're probably responding to price increases by the record labels, which were made possible by Apple's capitulation," Rosoff wrote.

Reports indicate retail giant Wal-mart is making similar changes to its digital music pricing.

Amazon, which launched its MP3 service in fall 2007, is making some inroads in its battle against the dominant iTunes. Recent data from NPD Group indicate that Amazon has carved out a solid No. 2 spot in the digital music market. Some argue that Amazon, by selling digital tracks free of anti-copy software (DRM), played a role in pushing Apple toward the DRM-free model.

Despite getting into tiered pricing, Amazon is still taking a lower-cost approach on many songs. The track "Poker Face" by Lady GaGa, for example, goes for 99 cents on Amazon MP3, while it sells for $1.29 on iTunes.

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