Report: Amazon finally set to launch MP3 store

If Amazon.com is finally ready to launch its MP3 download service, as Billboard reported this week, it sure has taken its sweet time in readying itself for the spotlight. As previously reported, Amazon has long explored the possibility of taking on Apple's iTunes, but has been reticent to do so with any digital rights management (DRM), the technology that limits what music buyers can do with downloaded music and an issue that has dominated debate for the past few years. Instead, Amazon wants to create a store that uses the DRM-free MP3 format, much like subscription service eMusic.

Billboard reported that Amazon will launch its MP3 digital download store in May, although the company has yet to confirm a target date and has publicly declined to comment. The report indicated that Universal Music, the world's largest music company, was set to test the sale of DRM-free digital music files, including some of its classical music catalog conceivably including titles by Andrea Bocelli, at the new Amazon store. Universal previously tested the DRM-free sale of music by pop singer Jesse McCartney, but has largely eschewed music that does not contain some form of copy protection. In a speech at the Music 2.0 conference in Los Angeles in February, Universal eLabs exec Larry Kenswil derided the sale of DRM-free music.

eMusic hits 300k subscribers, offers live SXSW sets

Digital music service eMusic reached another milestone this week, topping the 300,000-subscriber mark just four months after the company surpassed 250,000 subscribers. eMusic is a subscription service that charges a monthly fee for downloads in the MP3 format, offering 2.5 million tracks from more than 13,000 independent labels.

eMusic also said this week that it is set to unveil a series of live recordings from last month's South by Southwest (SXSW) festival. The sessions were performed by Snowden, Au Revoir Simone, the Broken West, and Rock Plaza Central, and were all recorded at the Urban Outfitters in Austin during SXSW. The EPs will be available exclusively on eMusic for one year, with one song from each artist available free at both eMusic and Urbanoutfitters.com.

Napster, Circuit City launch service

Napster and Circuit City said today that they have teamed up for a digital music service that Napster will power on Circuit City's Web site. Circuit City + Napster will launch on April 29, offering users access unlimited rental access to "millions of songs" for $14.95 a month. Customers will also have the option of paying 99 cents per download as well. Circuit City said it will also sell prepaid download cards for the service in its stores.

The moves comes several months after Napster and Circuit City's chief rivals, Real's Rhapsody and Best Buy, respectively, teamed up to offer the Best Buy Digital Music Store, powered by Rhapsody. "We are delighted to create this new alliance with Circuit City which is one of the top destinations in the US to learn about exciting, new digital entertainment products," Napster CEO Chris Gorog said in a statement. "Circuit City's strength both in consumer electronics and as a music retailer should be an ideal environment to introduce Napster's industry leading music subscription service."

Apple chief earns $1 salary again

Apple CEO Steve Jobs took in a mere $1 in salary in 2006, but the guy isn't exactly begging for change. In a regulatory filing with the Securities and Exchange Commission this week, Apple said Jobs earned $1 in salary, but that he also owns more than 5.4 million in restricted shares in the company, worth just shy of $500 million.

For the fiscal year that ended in September, Jobs was reimbursed $202,000 for expenses related to the business use of his private plane, the regulatory filing said. The jet was an executive perk Jobs received back in 2001.

Sirius CEO lobbies on Capitol Hill

At a hearing on Capitol Hill this week, Sirius CEO Mel Karmazin reiterated that his company's proposed merger with XM Satellite Radio will result in lower prices and more options for customers. But some members of the Senate Commerce, Science and Transportation Committee to which Karmazin spoke weren't entirely convinced. Daniel Inouye, D-Hawaii, the chair of the committee said Sirius has "a steep hill to climb" in showing that its proposed purchase of XM will not hurt competition in the audio entertainment market.

Both companies currently charge users a monthly fee of $12.95 to subscribe to their respective services, and Karmazin said a merged company would be able to provide both companies' programming on one "interoperable" radio for less than the $25.90 it would currently cost to subscribe to both services. Karmazin also said the merged company would offer consumers the option of subscribing to fewer channels for a monthly price lower than $12.95. Sirius' proposed buyout faces significant regulatory hurdles, particularly because the FCC granted licenses to the two companies in 1997 on the condition that they would never merge to create a potential satellite radio monopoly.