Amazon MP3 Cuts Prices to 69 Cents, How Low Can Prices Go?

After all of the crazy news of the Amazon Cloud Player service going offline for days at a time, Amazon.com has announced that they'll start selling MP3s at the low low price of 69 cents through their Amazon MP3 Store. They're hoping to hit iTunes head-on and encourage people to sign up for the new service and upgrade to the streaming Amazon Cloud Player with an increased 20 GB  storage.

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Of course, they might be looking to increase their slice of the online music market ... they currently hold only 12% compared to Apple's 70% with iTunes, according to figures released by NPD Group. Amazon is the number two player, obviously a distant second.

Amazon could be entering loss leader territory, a tactic used to sell music at cost to gain customers with the hope of getting them to buy additional items. What do you think about this? Does Amazon's price of 69 cents go to low, devaluing music at a time when it's increasingly hard for artists to make living off of music sales? Take our poll and tell us what you think.

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