D.I.Y.

Can eMusic Survive The New Amazon Store?

Second only to iTunes, eMusic has carved a significant niche in the scattered download marketplace with a subscription service offering plans starting at 30 tracks per month for $9.99. But how will Amazon’s Emusic_14new mp3 store effect eMusic; and how will labels who will be getting higher
payouts from Amazon react?

eMusic has amassed an impressive catalog from many significant indie labels.  By offering an effective per track cost of $.33 or less, the service is an attractive a
alternative for heavy downloaders who love independent music and want to consume it in a safe, legal and convenient environment. 

Amazon
But Amazon is saying to consumers that they don’t need to buy a $10-$20 monthly subscription.  Amazon will sell you the tracks you want when you want them as DRM free mp3’s. The price is higher then eMusic – $.89 to $.99 per track and $4.99 to $9.99 per album – but often lower then iTunes. And Amazon carries music that eMusic can’t from Universal, EMI and others. Can’t find the mp3? Amazon will sell you the CD.

I wrote extensively about problems with the eMusic model back in May. Some notable labels like Vagrant Victory and Epitaph have already left over lower payouts. How long will others accept a share of eMusic’s $.33 or less when a download at Amazon nets them far closer to the $.65 they get from
other sites?

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The major labels will never embrace eMusic. But if Amazon’s payments, variable pricing and powerful brand are enough to entice the two remaining major labels to experiment with mp3’s, an eMusic subscription becomes even less attractive. 

eMusic is stuck between raising prices and driving away subscribers or loosing key labels unhappy with a lower payouts.

Amazon has changed the game and there is no clear way forward for eMusic.

Also read "What The Amazon Store Is And Is Not" and our original series on eMusic.

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9 Comments

  1. I think everyone is missing a few points with all these “Amazon is going to be the death of eMusic” posts. The people who subscribe to eMusic aren’t necessarly interested in the major labels, for one. For another thing, and maybe the biggest point, a lot of eMusic subscribers aren’t willing to pay much more than the 33 cents a track they have on their eMusic plan. Add to that the fact that new labels are still coming on board, even if a few notables have left, and the fact that some of the cornerstones (Beggar’s Group, Concord) have recently renewed their commitment, and I don’t think eMusic is really going anywhere anytime soon.
    I still see Amazon as more of a competitor with Apple than eMusic. Time will tell, but I really think people are sounding the death knell for eMusic a little too soon.

  2. Why does it seem that Hypebot has a perpetual bug up it’s collective arse about eMusic?

  3. Cpt Wrong,
    The issue isn’t so much whether or not users will “make do” with indie labels. The question is whether the indie labels will “make do” with a smaller cut of much smaller revenue.
    Beggar’s Group and Concord are great, but there may be a point in the not too far future where the Orchard and Koch are the only options available. It’ll be interesting in the next few months to see where the bigger indies (Matador, Kill Rock Stars) side on the issue.

  4. I actually am a big fan of eMusic and until recently was a subscriber.
    What has always worried me about the model is that I question if a label can survive and make the payments it needs to artists and songwriters from a payout of less than 33 cents per track. Obviously some labels agree.
    If more labels leave, the fan will have to decide if eMusic is worth it or not. I write what I write as a warning not as I wish for eMusic to fail.
    Keep these great comments coming!

  5. I think iTunes, Amazon MP3 and eMusic will coexist and labels will generally acknowledge that more distribution with lower payouts is better than less distribution with a higher wholesale cost. This will be especially true if music groups create a 360-degree model and use music to move other revenue streams.

  6. I’ll be sticking with eMusic until they turn out the lights. I can live without the bigger indie labels like Epitaph and Matador. There is still plenty of good music out there. If I downloaded 40 songs a month from the Epitaph label on eMusic they shouldn’t assume I’d also download that much @ .99 a song at Amazon, far from it. What I’ll actually be doing is exploring other acts available on eMusic and spending my money there.

  7. I think emusic should consider variable track pricing. I think that Audio Lunchbox works this way. On the one hand, they could charge more credits per download for some tracks. The sellers ought to have some freedom to price their albums appropriately. It’s unfair to artists that have long tracks and low track count albums.
    On the other hand, they could let people download entire albums at a discounted rate. Some albums with high track counts at emusic are almost as expensive as iTunes (and more expensive than a used CD).
    I hope emusic can maintain a balance.

  8. Here’s the thing – an album on eMusic will probably get downloaded more than on Amazon. eMusic subscribers by and large download a lot more music than Amazon users *because* it’s a subscription service. This is balanced by a lower payout.
    So, labels need to earn to to math. Which is better – a few downloads on Amazon, or a whole lot on eMusic. If it turns out that mroe sell on eMusic, then sell on both. Don’t limit your marketplace.

  9. Sorry that labels feel emusic isn’t paying great, and the majors & major indies must stay away…but the catalog is still vast enough that i really always find at least 40 interesting tracks a month.
    I take chances on more music I wouldn’t normally buy, and i even download songs i already own on CD because it’s so easy & cheap.
    ex: Today a musician friend of mine emailed & wanted to know if I still had a copy of a song he had recorded almost 20 years ago on a rare CD. I said yeah, but since I was at work, I just downloaded the mp3 from eMusic for about 30 cents and emailed it to him in 5 minutes. Way easier than remembering to rip the disc at home for him hours later.
    I recently stumbled upon some rare Trouble Funk & Rebirth Brass Band tracks that I used to have somewhere on vinyl & CD but are now on expensive imports. I grabbed the ones I wanted and spent justa couple bucks, and listened to them instantly, painlessly…
    My subscription still has 30 songs left this month… and I can always get 10 more downloads refilled for $6… about the price I’d pay for a used CD …

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