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eMusic

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EMusic
Pricing model USA: Subscriptions starting at $9.99/month
UK: Subscriptions starting at £8.99/month
EU: Subscriptions starting at €12.99/month
AvailabilityUSA, Canada, Europe

eMusic is an online music store that operates by subscription. It is headquartered in New York, New York, and owned by Dimensional Associates, LLC. As of March 2007, eMusic is the second largest online music store and has over 250,000 subscribers. [1]

eMusic differs from other well-known subscription music services (such as Napster and Rhapsody) in that the files available for download are in the MP3 format, making them fully compatible with all digital music players, and free from digital rights management software restrictions such as expiration dates, or copying or CD-burning limitations.

While lauded by many, the lack of digital rights management (DRM) encoding and low price model have made the service unappealing to the Big Four record labels, leading it to specialize in indie rock and pop, jazz, electronica, new age, underground rap, traditional music and classical music.

Files

Due to the contentious nature of DRM encoding utilized by competing download services, eMusic has won praise for not including any in their own files, despite the fact that it has cost them contracts with the major record labels. They have openly stated that this is a business move that has greatly aided the site's popularity.[2] As Apple does not currently license FairPlay - the DRM format compatible with their popular iPod player, used in files downloaded from their iTunes Music Store - doing away with such protections is the only means for a competing company to offer iPod-compatible downloads.[3]

The record labels working with eMusic don't worry about file sharing of their music because eMusic users tend to be older, and less likely to engage in file sharing.[4][5] College students either couldn't or wouldn't pay for music online, so eMusic is more targeted at avid music fans.[5] Gene Rumsey, general manager of Concord Music Group, says eMusic fans are not the typical college-age file sharers. They are more rabid fans who he believes are less likely to engage in online song swapping.[4] Serious music fans would also appreciate that musicians are actually paid for every download.[5]

The eMusic service uses LAME compression to generate 192, 256 or 320 kbps variable bit rate MP3's. [6]

Status

eMusic had 2,000,000 tracks available for download and sold over 100,000,000 tracks as of December 2006.[7] New subscribers receive 25 free downloads over a period of 14 days.[4] After the trial period, unless the user cancels, the trial account turns into a subscription account. Subscriptions allow users to download a number of tracks per month. As of March 2007 a basic package is US$ 9.99 per month (or € 12.99 for eMusic Europe) for 30 downloads, with Plus and Premium subscriptions offering more downloads per month at higher prices. Every month the download limit is reset (regardless of how many songs were downloaded). eMusic also offers "booster packs" to subscribers, which expire after a year rather than after a month, and are consumed when subscribers download tracks beyond their monthly allotments.

eMusic caters to an older audience with the average subscriber being 39 who subscribes for at least a year.[2]

Selection

Most of eMusic's contracts are with independent labels, giving the service a reputation for primarily offering indie rock, indie pop, punk rock, jazz and classical music. eMusic highlights its offerings through a host of exclusive editorial content, along the lines of monthly "editor's picks", columns and guides. The company also cites statistics from the American Association of Independent Music that independents' market share of CD sales is 28%.[4]

With the "big four" record labels - Sony BMG, Universal Music Group, EMI and Warner Music Group - unwilling to do business with the site[4], many popular artists are either unrepresented or have very few releases available. This is more of a problem in the genres of Top 40 rock and rap music, and less so in genres such as jazz, where major artists spread their output across multiple, smaller labels. This allows the site to feature some acclaimed recordings by artists such as Thelonious Monk, Sonny Rollins, Miles Davis, and John Coltrane.

The site's alternative (or "indie") rock selection has also been aided by the rise in widely-distributed but privately owned "minor" labels, such as Kill Rock Stars and Matador, who have a fair amount of big-name talent on their rolls (i.e. Cat Power, The Decemberists, Interpol and Sleater-Kinney, who have been among eMusic's top-sellers). Music from other popular indie labels includes Merge Records (Spoon, Arcade Fire), Epitaph Records (Bad Religion, NOFX), K Records (Modest Mouse, Built To Spill), Touch and Go Records (Mekons, Girls Against Boys), and TVT Records (Lil Jon, Ying Yang Twins, Guided By Voices).

In 1999, eMusic made headlines by releasing one of the first internet-only albums by a major artist: Long Tall Weekend by They Might Be Giants.[8] The band would also go on to release a series of monthly, exclusive rarities collections (known as "TMBG Unlimited") through the service in 2001 and 2002, which is another way that eMusic can gain users.[5] John Flansburgh said that "Getting a half dozen or dozen unreleased songs out each month definitely provides an ‘ultimate fan club’ experience."[5]

In June 2006, eMusic added new music from V2 Records in the U.S. The label is one of eMusic's highest-profile additions thus far, with multiplatinum acts Moby and The White Stripes, along with critical favorites such as Grandaddy.[9] However, this music is not available to eMusic users in many other countries.

On 10 August, 2006, eMusic added two European versions of its online store: 'eMusic UK' and 'eMusic Europe'. Current subscribers to the global site that were within the European union had their membership transferred to the appropriate European store. eMusic UK and eMusic Europe have markedly inflated prices compared to their North American counterpart, partially due to the extra sales taxes which these stores are now subject to, which was particularly noted by customers forced to transfer. However, the changeover also included access to labels not available to non-European customers, notably London-based Domino records. The changeover also includes many works previously unavailable to European customers, such as music from The White Stripes and Mogwai. However, some artists previously available, such as Vienna Teng, became unavailable to UK subscribers, even if they had purchased them previously. It is also notable that the European version of the store is for customers within the European Union, not customers within Europe.

The eMusicLive Venue Network is 22 independent clubs in the US where live shows are recorded and offered to eMusic subscribers. Numerous shows are recorded every week. In addition to subscription sales, recorded CDs are offered for sale at the venue immediately after the event. eMusic plans to establish kiosks where the music can be delivered directly to MP3 players or flash drives. [10]

Incarnations and ownership

The original EMusic was started in March 1995 by Mark Chasan[11] as the fourth online CD retailer. Emusic and Nordic Music (owned by Kent Kiefer) formed a joint venture in February 1998 to become the first digital media retailer and sold the first MP3 players on the internet. Emusic, now headed by Chasan and Kiefer, purchased Guy Giuliano's internet radio service GBS Radio Networks. The new consortium launched the first online radio network LoudRadio, to broadcast over a terrestrial radio station via KLOD-FM in Flagstaff, AZ.

The company now known as EMusic was founded by Gene Hoffman and Bob Kohn on January 8, 1998 and originally named GoodNoise Corporation. In October 1998, GoodNoise acquired EMusic.com. In November 1999, EMusic acquired main rival Cductive[12] and in December 1999 acquired Tunes.com, which operated Rollingstone.com and DownBeatJazz.com. Then in 2001, the major label Universal Music (then a division of Vivendi Universal) bought EMusic.com for USD 24.6 million.[13]

In November 2003 the service was purchased from VU Net USA by a New York-based private equity arm of JDS Capital Management, Inc.[14] It was relaunched in 2004.

References

  1. ^ "NEW BARENAKED LADIES SONG IS ABOUT EMUSIC'S 100 MILLIONTH DOWNLOADER". Retrieved 2007-03-19.
  2. ^ a b Anderson, Nate (2006-05-22). "Making money selling music without DRM: the rise of eMusic". Ars Technica. Retrieved 2006-09-04. {{cite news}}: Check date values in: |date= (help)
  3. ^ "About Us". eMusic. Retrieved 2006-09-04.
  4. ^ a b c d e Graham, Jefferson (2006-07-30). "EMusic's pitch: Download song — and own it". USAToday. Retrieved 2006-09-04. {{cite news}}: Check date values in: |date= (help)
  5. ^ a b c d e Viveiros, Beth Negus (2001-09-01). "Finely TUNED". DIRECT magazine. {{cite news}}: Check date values in: |date= (help)
  6. ^ "Emusic Technical Help". Retrieved 2007-03-13.
  7. ^ "eMusic sells 100 Million downloads; Catalogue surpasses 2 Million tracks". 2006-12-13. Retrieved 2006-12-28. {{cite web}}: Check date values in: |date= (help)
  8. ^ "EMUSIC.COM & YAHOO! TO HOST EXCLUSIVE WEB-LAUNCH OF 'THEY MIGHT BE GIANTS' NEW MP3-ONLY ALBUM JULY 19". 1999-07-19. Retrieved 2006-09-04. {{cite news}}: Check date values in: |date= (help)
  9. ^ "eMUSIC ADDS V2 MUSIC, PALM PICTURES AND VELOUR MUSIC". eMusic. 2006-06-15. Retrieved 2006-09-04. {{cite web}}: Check date values in: |date= (help)
  10. ^ "eMusic venues". Retrieved 2007-03-24.
  11. ^ "Music to their Ears: Virtual CD Stores". BusinessTown.com. Retrieved 2006-09-04.
  12. ^ "EMusic.com to Acquire Cductive.com". EMusic. 1999-11-22. Retrieved 2006-09-04. {{cite web}}: Check date values in: |date= (help)
  13. ^ Evans, James (2001-04-09). "EMusic Bought by Universal for $24.6 Million". PC World. Retrieved 2006-09-04. {{cite news}}: Check date values in: |date= (help)
  14. ^ "New York-Based Private Equity Firm Finalizes Purchase of eMusic". eMusic. 2003-11-04. Retrieved 2006-09-04. {{cite news}}: Check date values in: |date= (help)

See also

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