Thursday, November 18, 2010

EMusic: Win a little, lose a little

EMusic: Win a little, lose a little is the optimistic title of an article on the LA Times site. It details the reasons behind the recent moves at Emusic, noting that "getting Warner and Sony's releases on the same day they go to iTunes could make eMusic significantly more appealing to mainstream music fans, especially given that the former charges [US]99 cents to $1.29 for those tracks, while eMusic has said it will charge no more than 89 cents. Granted, Amazon and Walmart charge less than iTunes too, and neither of them has been able to make much of a dent in Apple's dominant market share. But eMusic's subscription approach yields larger discounts."

"[Emusic CEO Adam] Klein said in an interview in September that the service was hovering around 400,000 subscribers - essentially unchanged from its level two years before, and not quite where it needed to be to sustain its business."

Clearly, staying with indie music fans is not a long term sustainable business plan for Emusic. 

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