Thursday, November 18, 2010

eMusic loses three independent labels; fails to distinguish itself.

Over a year ago, eMusic raised its prices (or as eMusic spun it: they kept prices flat but lowered the number of downloads of subscriptions) while bringing in Sony Music, angering a lot of its customers including myself.

I left.

Last month, eMusic restructured pricing, completely removing subscriptions and going with a per-download price scheme (effectively increasing prices once again for existing customers).  At the same time, eMusic announced that they were bringing Universal Music Group on board.

According to the NYT yesterday, eMusic just lost three independent labels from their roster.  Worse, their subscriber base has been flat, holding at around 400K for nearly three years.  One might say that their move to major labels has been utterly uninspiring.

The transformation is complete: eMusic is now just another MP3 service with nothing to distinguish itself from the other sites.  Dimensional Associates may never get a positive return on their purchase of eMusic, methinks.

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