eMusic News

Timis · **Posted:** Wed Mar 21, 2007 4:02 pm

Quote:

Hypebot reports that eMusic--the site for people who like to drunk-download fifty indie-rock songs at a time--might be up for sale. The question comes just after Warner-owned Vice Records pulled its albums from the online retailer, meaning that people looking for the new Bloc Party album are going to get directed elsewhere.

Our sources now tells us that European digital distributor Vital...pulled Vice's content from eMusic Europe because of "royalty issues". In the US Atlantic helps fund Vice; so it may have been WMG who forced the eMusic take-down here.

We're also hearing persistent rumors that even as some labels are growing restless, eMusic is actively up for sale. Google and Amazon are most often mentioned as buyers. Some even claim a deal is close and attached a purchase price around $100 million to the rumor. I haven't seen any of the private company's numbers, but the figure seems high given the competition (including Amazon) almost ready to or strongly considering entering the mp3 marketplace.

timmyjoe42 · **Posted:** Wed Mar 21, 2007 4:04 pm

ruh roh

Edit: I've actually gotten a little tired of burning my own discs so I can listen in the car, especially since i've been getting tons of discs from Lala for even less than the price of an eMusic album download.

HaqDiesel · **Posted:** Wed Mar 21, 2007 4:17 pm

I think this could be really good news. If Google or especially Amazon (who probably already has licensing deals with everyone for something or other) buy them, I'd think we can expect more, not less, label involvement.

OPA! · **Posted:** Wed Mar 21, 2007 4:24 pm

I hope this isn't bad news. I like emusic very much and it's quite addictive. It also saves me quite bit of money every month.

billy g · **Joined:** Mon Oct 25, 2004 1:41 pm **Posts:** 9020

I don't know that there is really anything to read into this. Emusic is owned by a private equity firm. Very few private equity firms are long term investors. Most look to only hold their investment for five years. I think this is just the normal course of business for them in trying to sell their interest. Will be interesting to see who buys them though and what they plan for the future. I don't think i'd buy a full year subscription from them but then I wouldn't have been comfortable doing that in the past either because you never know how well capitalized a firm like emusic is.

legonads · **Posted:** Wed Mar 21, 2007 4:50 pm

HaqDiesel Wrote:

I think this could be really good news. If Google or especially Amazon (who probably already has licensing deals with everyone for something or other) buy them, I'd think we can expect more, not less, label involvement.

I don't know if I trust Amazon to keep it entirely DRM-free, though it would be stupid go change this.

Vice is Warner owned? I thought none of the majors sold on Emusic.

ptrck · **Joined:** Wed Oct 27, 2004 10:55 pm **Posts:** 5568

I dont think that WMG owns Vice, it does say they 'help fund' them in the states, though.

Ive been with emusic for like 3+ years and theyve sold once before, I think. There will be changes and they wont be pretty and emusic will go down...remember they used to offer umlimited downloads each month.

billy g · **Joined:** Mon Oct 25, 2004 1:41 pm **Posts:** 9020

Saint Patrick Wrote:

I dont think that WMG owns Vice, it does say they 'help fund' them in the states, though.

Ive been with emusic for like 3+ years and theyve sold once before, I think. There will be changes and they wont be pretty and emusic will go down...remember they used to offer umlimited downloads each month.

As much as I enjoyed the unlimited downloads (but also listened to a lot of crap as a result), that was a pretty unsustainable business model. The fact that they ditched that doesn't necessarily mean more changes are needed.

It will all depend on who buys it, why they buy it, and what they want to do with it.

Flying Rabbit · **Posted:** Wed Mar 21, 2007 6:21 pm

Agreed. BG makes sense. Anything now is speculation, and unless you do in fact have a yearly subscription, its probably nothing to sweat over just yet.

fuse · **Posted:** Wed Mar 21, 2007 8:06 pm

Timis Wrote:

people who like to drunk-download fifty indie-rock songs at a time

Guilty.

Yail Bloor · **Posted:** Wed Mar 21, 2007 9:03 pm

billy g Wrote:

I don't know that there is really anything to read into this. Emusic is owned by a private equity firm. Very few private equity firms are long term investors. Most look to only hold their investment for five years. I think this is just the normal course of business for them in trying to sell their interest. Will be interesting to see who buys them though and what they plan for the future. I don't think i'd buy a full year subscription from them but then I wouldn't have been comfortable doing that in the past either because you never know how well capitalized a firm like emusic is.

Exactly. And they aren't in business for charity, I'm guessing.

al pastor · **Joined:** Mon Aug 15, 2005 3:05 pm **Posts:** 86

plus i suspect a lot of indie labels that jumped into 3 year contracts with emusic back in the day are getting ready to jump ship. emusic doesn't pay them (and subsequently their bands) half as much as itunes does.

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