Head-to-Head: Amazon Takes on iTunes

Amazon.com (NASDAQ:AMZN) is going head-on with Apple (NASDAQ:AAPL) in the content business after announcing a new music service that competes with the iTunes store.

Amazon AutoRip will give customers free digital versions of music CDs purchased from the Internet retailer. The music files will be stored in the cloud automatically, giving the user the option to play or download them immediately, Reuters said. Amazon’s cloud player is free for customers who download 250 songs or fewer and costs $24.99 annually for up to 250,000 downloads.

Should you buy or sell Apple’s stock ahead of earnings this month? Our 20-page proprietary analysis will help you save time and make money. Click here to get your SPECIAL REPORT now.

While Amazon has been in the digital music business since 2007, its market share is less than 15 percent, according to data from The NPD Group. Apple’s iTunes store leads the market with more than 50 percent share…