Does eMusic exploit indie bands and labels?

For many, eMusic is the most progressive music site on the Internet. While many new media advocates have been advocating major labels switch to subscription-based service, eMusic has already gone that route for indie labels, providing easy, cheap access to their music and increasing exposure for oft-ignored bands.

 

But over at Hypebot, Bruce Houghton points to a possible chink in the eMusic's credibility armor: the fact that indie artists and labels receive significantly less per track on eMusic than they do for traditional digital download sites such as iTunes or Amazon. Since eMusic only pays 30-35 cents per download, after distribution costs and songwriter royalties, only 20 cents per track is left for the artists and labels (and that doesn't account for the free tracks you get when you sign up).

 

Houghton's criticisms are more directed towards eMusic's specific business model than the general model of subscription based music download. Keep in mind that eMusic users receive a finite number of downloads per month depending on how much they pay, so it's not a completely pure subscription model. It's also unclear how the new monthly rate affects the amount paid per track, if at all. A point could also be made that even with pay disparity, eMusic helps offset the costs of piracy and increases exposure, but there's no hard numbers to support that argument. Either way, it's a fair point to keep in mind before lionizing eMusic as harbinger of things to come.

Posted in: EMUSIC , TECHNOLOGY
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9 Responses

June 24, 2008 at 11:13 a.m.

It always seemed like eMusic was a great deal for consumers, but on the flip it does seem to make the cut for artists pretty low.

June 24, 2008 at 12:34 p.m.

From what I've seen, Emusic's model pushes indie labels harder then other sites can. This makes it one of the top sellers for us at Uncommon. With more sales, that brings a higher total. Obviously, you have to sell more on Emusic then on Itunes under this system. But, every brick and mortar retailer works different too. Some do consignment, some pay up front for your CDs, some pay this, some pay that. It's up to the label to decide whether placement in that store is worth the hassle. The same is true here. At the end of the day, Emusic pays their bills, unlike alot of other popular retailers like Snocap and others and when your an indie as long as the checks come in, you'll be ok.

June 27, 2008 at 7:53 a.m.

The hypothetically offended indie artists and labels should consider the end result of total money spent on music downloads rather than focusing on the individual track price. Apple's recent press release (http://www.apple.com/pr/library/2008/04/03itunes.html) told of 50 million customers and 4 billion songs sold. This averages 80 songs purchased TOTAL per user. Compare that to my US$50 a month emusic connoiseur subscription of 200 songs a month. If I had to buy 200 songs a month on itunes because emusic didn't exist, #1 I wouldn't be buying independent music at itunes prices, and #2 I wouldn't be buying that many songs a month at itunes prices. I'd go elsewhere. Maybe to radio, but most people have gone to piracy to access the variety of music that we have become accustomed to. With regards to emusic charging less per track though, I find that when you purchase 200 new songs a month, you do not listen to them the same way you used to listen to a cd purchased for $30. I don't generally listen to the songs as many times because there's something new to move on to. Emusic works because it leverages the economic "long tail" of the music biz which happens to consist of indie artists and bands. In my opinion there is no ripping off here.

June 27, 2008 at 6:23 p.m.

I've been inside the digital music industry for five years. And back in 2003, emusic was one of the very first digital outlets that publicly distributed,reproduced and performed my independent audio book. You tell Danny Stein that if he don't go find my money, I'm coming to New York City to personally bust his ass: your's truly { Literati X }. . .

July 1, 2008 at 11:52 a.m.

Since eMusic only charges 25-30 cents a song on some plans, I doubt it's paying 30-35. That guy's story might have been interesting if he had the right numbers.

July 6, 2008 at 2:37 a.m.

To Unicornula: eMusic has a subscription model. A large majority of subscribers don't use their downloads every month, and it's use them or lose them. This allows eMusic to payout higher than what they charge per track on individual plans.

July 12, 2008 at 10:33 a.m.

I understand how artists need to get paid, when they are putting so much time, soul, and effort doing what they do full-time but when it comes down to it, I think it's all about the music. They might be getting ripped but I'm sure the true musicians that do it for the art of it are happy that more people are exposed to more of their music.

August 14, 2008 at 10:57 a.m.

I know I could go without that gold plated shark tank next to my pool, i'd rather just make enough to where I make money off of my music, something I love to do. A regular house, car, beer, maybe a home recording studio is all I need to be happy. I'll have the fame. I'll make way more off of concert tickets.

January 7, 2009 at 11:52 p.m.

I got the right numbers now , friend! Follow the plot granted to you for free admission by a great poet spraying the spoken spectacular just for you: In between the quadrillion and the quintillion eXist the trillionaire poet { Literati Di Graffito X }. . .in cash money syndication--

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