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Amazon launched its mp3 digital download store on September 25, and immediately went after iTunes.  They undercut their prices by selling them mostly between $.89 and $.99, gave the mp3s higher sound quality and removed copy restrictions. 

Apple responded last week by lowering the prices of their iTunes Plus tracks from $1.29 to $.99, raised the quality from 128 kbps to 256, and also removed copy restrictions. 

“We worked to make it easy to get music right into iTunes because convenience is an important part of the experience,” says Pete Baltaxe, Amazon’s director of digital music. “We don’t ask them to choose a particular music management system or piece of hardware.”

More competiton = better choices for consumers.  That’s the bottom line.  Step back and enjoy the battle. 

Read more at Yahoo!

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