Wednesday, June 10, 2009

Dear eMusic: I Tuned Out

Rule number one in a slumping economy: Don't raise prices for your product when you are already lagging behind your primary competitor.

This is what eMusic recently announced they would be doing in the third quarter of 2009. The decidedly indie-leaning digital music store (also known as "Not iTunes") has seemingly shot themselves in the foot by announcing that their customers will soon be getting less and paying more for the tunes they covet.

Here's how the price change will affect each service tier:

Basic-tier subscription ($11.99)

The price stays constant, but the songs don't remain the same.
Now: 30 tracks/month ($.40/song)
Later: 24 tracks/month ($.50/song)

According to a piece ran in the LA Times, existing customers will be grandfathered into the old 30 song ($.40 each) a month plan for the basic-tier plan.


Middle-tier subscription:

Now: $14.99 gets you 50 tracks/month ($.30 /song)
Later: $15.89 gets you 35 tracks/month ($.45 /song)


Premium subscription ($11.99)

Now: $19.99 gets you 75 tracks/month ($.27 /song)
Later: $20.79 gets you 50 tracks/month ($.42 /song)


Gun meets foot...check. Not content with this move alone, eMusic then reloaded said gun, aimed at its other foot and shot it with the news that they had struck a deal with Sony Records, meaning you'll be able to download music released more than two-years ago from labels like Arista, Columbia, Epic, and others under the Sony umbrella.

How is this bad you may ask? eMusic acquires access to tons of catalog material via Sony and will potentially position themselves to a much greater customer base. This is a move that positions the self-proclaimed second-largest digital music store to expand their selection beyond their predominantly indie song library. It makes perfect business sense, but eMusic has built its reputation by being the indie-music lover's personal oasis. It's been their defining feature, yet they appear content to not only change their pricing structure in the face of economic difficulties, but simultaneously deflate their own cred amongst their loyal subscribers.

eMusic has consistently been a more affordable online music retail option and appealed to the indie niche, actually forshadowing the rise of independent music labels and artists the last half-decade. While I don't fault a business for changing with the times and doing what's necessary to remain relevant in an ever-changing business model, I do hope that they make one more change, this one for the positive. One almost needs a sherpa to navigate the sloppy layout and non-intuitive interface that is eMusic's site. Put your money where your code is eMusic and tighten things up. It may be your only hope for remaining number two.

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