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Look, I've used the iTunes store to discover new music, and I also subscribe to eMusic, but it's obvious that once you listen to this music through good headphones or a good stereo (even in the car), you hear the difference.
I did a test last night, ripping a CD in AIFF (lossless), Apple lossless, 320 bps AAC, 256 MP3 (w/ variable bit rate) and 128 AAC. Through good headphones, anything less than 320 bps AAC, was detectably flawed--flatter, less spacious, harsher, and ultimately less enjoyable.
I've been ripping my CDs at 320 bps AAC for a couple of years now. It does reduce the number of songs I can store on my iPod, but the music sounds very good.
From eMusic, I typically get 160 bps VBR MP3s. The quality is acceptable, but when listening in shuffle mode, when an eMusic tune follows a 320bps AAC tune, the difference is audible, even in the car. The same is true of 128 bps AAC (the Apple standard). I did seek out a Joss Stone album from EMI on iTunes and downloaded it at 256 bps AAC. It does sound pretty darn good, but maybe because I'm in love with Joss Stone (but that's a whole 'nother matter). ;^)
Having said all this, I do think it's good that Amazon is offering some real competition to iTunes. However, I think all these stores have to start offering higher bit-rate versions of these songs. We are getting sold down the river buying these inferior quality tracks, when the music industry has every opportunity to provide superior quality downloadable tracks. For example, nowadays, most music is recorded at 24-bit 96 kHz sample rates, twice the CD standard. What if the music industry ripped their AAC or MP3 downloads from these high-quality masters? But they don't. They rip them from a commercial CD, an already-compressed version of the master.
The music industry, in my opinion, is not taking the bull by the horns. They are not cherishing their product and making sure that we, the buying public, are able to obtain it in optimal condition. 320 bps AAC should be the very lowest bit rate offered. Heck, even offer it in higher bitrates if people are willing to spend the bandwidth (and some extra cash) to download it.
All of the DRM and low bit rate nonsense continues to assure the decline of the music industry. They have to start thinking differently...with Apple, with Amazon, with whoever will provide a superior product and user experience to their customers.