It looks like Amazon is pretty serious about very serious about getting a foothold in the music download business. They’ve just sent out an email to all the Amazon Associates offering a 20% commission off all music downloads:

Through December 31, 2007 Associates are eligible to earn 20% on all MP3 referrals (up to $1.50 per item). Beginning January 1, 2008 the referral fees will be 10%. There is no limit to the number of items on which referral fees are earned.

Expect to see all your favorite lyric and music related sites jumping on board with this program. With Amazon offering DRM free 256kps MP3 downloads for $.89-$.99 I can see them taking over a big piece of the online music pie. iTunes, the biggest player in the industry right now has already responded to Amazon’s entry by lowering the price of their DRM free downloads from $1.29 to $0.99.

I for one think this is a refreshing change, and I’m very happy to see some real competition in an industry that’s been largely dominated by Apple, and the iPod. As more people come to understand the raw deal they get when buying DRM restricted (see defective by design) files, they will start flocking to the retailer that gives the them some real freedom.