Slouching Toward Digital

Amazon may finally allow record labels to give iTunes a run for its money. But the e-commerce giant will also test the labels' tolerance for lower pricing

Amazon.com's (AMZN) new music download service amounts to a grand experiment for record labels, many of which have agreed to sell their tunes for the first time without restrictions against copying and other digital rights management (DRM) protections. But Amazon's online store will also be a crucial test for just how flexible the beleaguered music companies are when it comes to pricing.

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