This will be good for those harder to find out of print titles. Combine this catalog with their newly announced quarterly plans and I suspect eMusic will gain a decent amount of new subscribers.
Sony Agrees to Provide Its Older Songs to eMusic
By BRAD STONE
Published: May 31, 2009
In another example of struggling major music labels and Internet services finding common ground, Sony Music Entertainment has agreed to make its back catalog of songs available on eMusic, one of the largest music retailers on the Web.
Bruce Springsteen?s classics will be available on eMusic.
EMusic, a company based in New York City, has some 400,000 subscribers who pay a monthly fee to download a certain number of songs. Its service is primarily aimed at adults who are fans of music from independent labels.
The company plans to announce on Monday that it will add all Sony Music tracks that are more than two years old, including material from artists like Michael Jackson, Bruce Springsteen and Billy Joel.
The major labels had long been skeptical of the economics behind eMusic?s proposition to consumers. Subscribers to eMusic?s ?basic? plan, for example, pay $11.99 a month to download 30 songs ? or about 40 cents a song, far below the prices on Apple?s iTunes. Songs are in the MP3 format and do not have restrictions against copying.
As part of the deal, eMusic says it will slightly raise prices and reduce the number of downloads for some of its monthly plans.
Danny Stein, eMusic?s chief executive, said he had been talking to the major labels about adding their music for several years. Talks continue with Warner Music, the Universal Music Group and EMI, he said. He added that many of the independent labels had been asking the company to raise its prices.
?We have been looking for a catalyzing event to do it, and we think introducing this vast, quality catalog from Sony is that event,? Mr. Stein said.
The deal highlights several shifts in the online music landscape. The major labels gave up their objections to selling songs in the unprotected MP3 format in 2007. They also prevailed upon Apple this year to move to variable pricing in its iTunes store. Apple now sells older songs for 79 cents and new tracks for $1.29.
The major labels have also been more willing lately to strike more flexible and less expensive deals with start-ups like Imeem that are trying new approaches to online music.
Sony Music and eMusic would not disclose the particulars of their deal. An executive at Sony Music, a subsidiary of the Sony Corporation, said the company was interested in seeing multiple models for digital music coexist on the Web.
?We think the model of buying a set amount of music each month under an MP3 allowance is an attractive subscription option for consumers,? said Thomas Hesse, president of Sony?s Global Digital Business unit. ?We are supportive of offerings that encourage fans to dig deep into the repertoire of our artists and discover the richness of our catalog.?
