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Today’s big announcement comes from Rhapsody, the online music service previously known for its subscription-based streaming music for a monthly fee. Well, turns out people are more interested in owning their music rather than renting. So now we have another major competitor for iTunes and Amazon MP3.

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It’s no secret that I’m a fan of Amazon MP3, but that doesn’t mean it’s perfect. And I’m glad the Amazon MP3 team doesn’t think so either. Here’s a copy of an email I received from them asking me to fill out a survey. Check out some of the more interesting questions asked followed by commentary (after text of the email below):

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Radiohead frontman Thom Yorke decided to open up a little on the band’s “pay what you want” experiment from last year:

“I think it was a one-off response to a particular situation… It was one of those things where we were in the position of everyone asking us what we were going to do. I don’t think it would have the same significance now anyway, if we chose to give something away again. It was a moment in time.”

Translation: “We didn’t make as much as we are hoping, and it would only be less if we used that model again.”

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I may be alone on this one, but I just noticed a small pattern in my CD shopping habits. Here’s an example:

Over the past couple years, I’ve come to love music from the band Muse. British rockers with some serious talent, they have a great sound that is a mix of britpop, rock, alternative, and electronica.

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Market research firm NPD Group issued a report today explaining that Amazon MP3 is growing but not taking away customers from Apple’s iTunes. It seems that only 10% of Amazon MP3 shoppers in February were iTunes shoppers previously.

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Ars Technica has the scoop on a “new” study which shows how Apple’s iTunes is “widening its lead in the digital music market at the expense of other top brands.” The name of the article, in fact, is Competition unable to take a big bite out of Apple’s iTunes. The article could be interesting, what with its data, charts, and supposed analysis. But it has one major problem that invalidates most everything said:

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Apple has issued a press release about becoming the number two (behind Wal-Mart) music retailer in the U.S. Best Buy used to have that spot, but music downloads seem to be catching on. Well, that and CD sales are declining rapidly.

Apple claims that 50 million customers have bought over 4 billion songs with 20 million sold on Christmas day alone. That’s impressive even if digital music purchases have yet to offset the decline in CD sales.

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Amazon today has announced plans to take its DRM-free MP3 music store to countries beyond the United States. In the U.S., at least, Amazon MP3 is already the online music store of choice.

It’s hard to compete with the largest library (3.3 million songs from 270,000 artists) of restriction free music, much of which is priced lower than the going rate of $0.99/track. And it integrates seamlessly with iTunes (or other desktop music applications) plus works with pretty much any digital music player available.

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Hot on the heels of the Last.Fm announcement that you can stream any song up to three times for free, Yahoo rumors are brewing again. According to two record company executives wishing to remain anonymous, Yahoo is in talks with major record labels about offering DRM-free (unprotected) MP3s either for sale or for free supported by ads. Either way, Yahoo wants to launch the new service this year sometime.

This news could be even more interesting when juxtaposed with what Yahoo Music’s VP of Product Development Ian Rogers hinted at a couple weeks ago. Namely, big news revolving around dramatic changes in Yahoo’s music model. He said, “We’re in the process of redefining what Yahoo! Music is, and making it the Music destination in Yahoo!’s successful image.”

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Just a few days after our coverage of DRM-free music options for 2008 comes news of Sony BMG now offering its music on Amazon restriction-free. Sony BMG represents artists such as Bruce Springsteen, Foo Fighters, Santana, and Justin Timberlake. And this makes Amazon the first online music store to offer DRM-free songs from all four major labels: Sony BMG, Warner, EMI, and Universal Music.

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