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Amazon's (AMZN) Unbox video service turning into Apple (AAPL) iTunes competitor?

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Is Amazon.com, Inc. (NASDAQ: AMZN)'s Unbox video download service worth a look for those wanting to get into video downloads outside of Apple, Inc. (NASDAQ: AAPL)'s iTunes product offerings? Depending on which products you may already have in your home, it very well may be.

Amazon's Unbox video service has been tweaked since I originally looked at it a few months ago, and now the service offers many free TV show downloads for use with your computer or portable media player (like the new Creative Zen), as well as movie and TV show downloads for your TiVo, Inc. (NASDAQ: TIVO) box.

While Amazon's Unbox video player program download doesn't feature all the niceties of Apple's iTunes, I'm not sure it was designed to. The program download, which facilitates content transfer to your PC, is very straightforward and incredibly easy to use. While not featuring music or podcast downloads, the program focuses on video content exclusively (for now). However, that may change soon, with Amazon recently unveiling that it's now offering 2+ million non copy-protected music downloads as well. Perhaps the Unbox player will feature music content soon? That would be my educated guess.
Is Amazon's intention to be a direct competitor to Apple's iTunes? It sure could be perceived that way. YOU THINK? There are many ways to purchase and download music to non-Apple players these days, but Amazon seems to be quietly building an all-content model that is featuring many of the same offerings as the market-leading iTunes content store.

Its Unbox service is a step in the right direction at this time, which is something I can state after having used it recently to download a few free television shows to test the service out. Newer portable media player options are becoming just as sophisticated as Apple's iPod products (along with finally having some great style), but I'm not sure Apple faces a threat from Amazon just yet. Why? The iPod / iTunes ecosystem is very slick and integrated with video and audio content. Unbox isn't there yet.

Now that NBC has shied away from the market leader, will it come crawling back? The answer to that question may be a stepping point at which Apple's iTunes / iPod power becomes at least partially questionable throughout 2007 and into 2008. It could grow past its already-high market share -- or competitors could nibble some of that share away and Apple could lose a bit. Amazon stands to be at the top of the 'nibble' pack from my estimation. Right now, the threat to Apple from Amazon is minimal, but the world changes quickly. That could change in a matter of months.

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Last updated: November 25, 2009: 07:28 PM

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