eMusic has announced a revamp of its pricing structure as part of a deal that has convinced the world’s biggest record company to sign up to the service.
Universal Music’s roster, which includes U2 and Jay-Z, will be available from November, at which point eMusic will switch from its credit-based system to a more straightforward price structure.
Individual MP3s will cost 42p each — 37p cheaper than iTunes — while the price of LPs will be the sum of the individual tracks —again, cheaper than iTunes for recordings with fewer than 20 tracks. However record labels will be able to demand more, which is not currently possible as all tracks are “priced” at one credit.
The changes does not mean that eMusic is becoming an à la carte store, like iTunes. It is retaining its “digital music club” model, where users pay a fixed amount each month. Previously this entitled them to a fixed number of credits; now it will give them a cash balance to spend each month (and which, as now, will not not carry over from one month to another).
It is this model, which guarantees a certain level of spending per user, that enables eMusic to undercut rival music services.
Existing subscribers will not lose out. They will be migrated to a Preferred plan, exclusive to current members, where they will continue to pay the same amount, but eMusic will provide a free “bonus” each month to top-up the balance so they can continue to download as many tracks as before.
eMusic says that changes will ensure the service can offer more music, and offer it more quickly, while making it easy for users to see how much they are spending.
“Longtime eMusic members know that our label partners often hold back popular new releases until months after release date — largely because of our current, inflexible, one-credit system. It’s even prevented some labels from signing with eMusic at all,” the music service says.
“The change to a monetary system gives us the price flexibility required to offer significantly more music from both major and indie labels. It’s also a familiar, straightforward way for our members to buy music and compare prices against other digital music services.”
The deal with Universal is similar to the agreements that eMusic had already struck with Warner Music and Sony, that provides access to record labels’ back catalogues, but not anything released within the preceding 18–24 months.
eMusic chief executive Adam Klein said that he is still talking to labels about adding new releases. He also hopes that the fourth major, EMI will come on board soon.
But he insisted the service will continue to focus on the independent labels that have been its bedrock and on helping users to discover new music.
