Or possibly both. Amazon’s AutoRip service means that when you buy one of a limited, but considerable, range of CDs, you get an MP3 version in your Amazon cloud player for free. Even past purchases are automatically added, which means US customers have received emails informing them that hundreds or in some cases thousands of tracks have been added to their Amazon cloud player.

The service adds value to CD purchases in several ways. You get instant delivery, so you can start listening to your music straight away, and when the CD comes in the post, you can enjoy the artwork and play it on your hi-fi for best quality.

Amazon is differentiating from Apple, which only sells a download.

An infernal creature lies in the details though. Here are a few comments from Steve Hoffman’s music forum:

Got Auto-rip Pink Floyd’s DSOTM 2011 mastering of the DSOTM SACD that I bought in 2003.

and

I now have autorips of cd’s I no loner own…..interesting concept.

and

I now have autorips of CDs I bought as gifts.

These customers have done nothing wrong. They bought a CD from Amazon and gave it away or sold it, but it is still in their Amazon history, so now they have the MP3s.

Another interesting point is that Amazon appears to treat all versions of the same recording as equal. This is why I have included the comment about the Pink Floyd album above. Record companies have done well over the years by persuading fans to buy the same CD again in a remastered version, sometimes with bonus tracks. The Beatles 2009 remastered CDs are a well-known example. But if customers with unremastered CDs are now getting remastered MP3s automatically, this type of sale is harder to make.

The gift issue is more serious. The terms and conditions say:

Albums purchased in orders including one or more items marked as “gifts” at purchase are not eligible for AutoRip.

and intriguingly:

If you cancel your order or return this album, our normal order cancellation and product return policies will apply regarding the physical version of this album. However, if you download any of the tracks on the MP3 version of the album from your Cloud Player library (including if you have enabled auto-download to a device and any of the tracks on the MP3 version of the album auto-download), you will be considered to have purchased the MP3 version of the album from the Amazon MP3 Store and we will charge your credit card (or other payment method) for the then-current price of the MP3 version of the album (which will be non-refundable and may be a higher price than the physical version of the album).

Someone therefore has thought about the problem, though I predict unhappy customers, if they buy a faulty CD, return it, and find they have been charged anyway thanks to an auto-download feature of which they might not understand the implications.

Note also that many CDs are purchased as gifts without being marked as gifts in Amazon’s system. The idea of marking items as gifts is that you can have gift wrapping and get an item sent to another address, but if you plan to do your own wrapping, it is not necessary.

Here is something else. Audio enthusiasts are not happy with MP3s, preferring the real and/or psychological benefits of the lossless CD format for sound quality. For many people though, the audio is indistinguishable or they do not care about the difference.

What do you do if you receive a CD in the post, having already downloaded and enjoyed the MP3 versions of the tracks? I imagine some customers will figure that they have no use for the CD and sell it.  Provided they do not return the CD to Amazon, I cannot see anything in Amazon’s terms and conditions that forbids this, though I can see ethical and possibly legal difficulties in some territories.

The consequence is that someone may lose a sale.

Subscription is the future

My view on this is simple. The only sane way to sell music today is via subscription – the Spotify or Xbox Music model. The idea of “owning” music (which was never really ownership, but rather a licence tied to physical media) is obsolete with today’s technology.

Amazon’s new initiative demonstrates how little value there is in a downloaded MP3 file – so vanishingly small, that it can give them away to past customers for nothing.