When it comes to digital media, Amazon means business! Their latest offering: 69 cent downloads on popular new releases. That's less than half of what iTunes charges.
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The new entry-level series starts at only $199.
Prices need to fall across the music industry as a whole if they really want to deter people from piracy.
I'd like to see a 'pay what you think it's worth' model: people can listen to clips before downloading then pay what they think it is worth (subject to a minimum of say $2). Even if someone pays the minimum it's $2 more than they would have gotten if they'd illegally downloaded. The makers of Championship Manager 2010 used that model for digital purchases of the game.
Amazon trying to drive customers from iTunes, this is also a good initiative as lower the prices would encourage people want to buy the music more.