Amazon's got a real shot at dethroning iTunes when it comes to selling major-label music online. They just announced they'll be selling Warner Music too without any kind of DRM, and they're doing it cheaper than iTunes. The ability to purchase music cheaply, legally, without strings and to play it on any player, including iPod and iPhone, is the only way ANYONE could compete with Apple in this market and it's taken Amazon's clout to make it happen. And it's not just music. They're also selling e-books with the Kindle which was pretty well-reviewed and movies that can be downloaded directly to the TiVo. We've done the movies a few times and have been moderately happy with the results. Once they work out a few kinks, it'll be great. They'll often have deals on relatively new rentals. We paid only a buck each to rent The Lives of Others, Hot Fuzz, Zodiac, and Ocean's Thirteen. Four movies for what it would cost us to rent one movie from Blockbuster and no trip to the store.
The DRM is a real pain though. If I start watching a movie at 8pm on tuesday night and my son wakes up and I can't finish the film that night, there's a 24 hour countdown 'til it disappears from the TiVo. It'll take a few years of competition before the restrictions are loosened for film rentals and books, but it's a trend, and I'm sure we'll get there eventually. Just don't expect to get there without some kicking and screaming.