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Fri, Nov 21, 2008 - 05:28 AM EST  —  AAPL: 80.49 (-5.80, -6.72%)  |  NASDAQ: 1316.12 (-70.30, -5.07%)

eMusic CEO: Contrary to USA Today report, we’re #2 in digital music sales, not Amazon
Thursday, March 27, 2008 - 11:43 AM EST

"[Yesterday] morning I read with some surprise in USA Today that Amazon is 'No. 2 in digital [music] sales since opening nearly six months ago.' Amazon’s entry into this market last year was an important milestone in the continuing irrelevance of DRM and the overly restrictive and anti-consumer policies that the music industry has foolishly wielded in this new, digital age. But let’s get one thing straight: outside of iTunes, no one sells more music digitally than eMusic, and we don’t plan on giving up that title anytime soon," David Pakman, President and CEO, eMusic writes in an open letter on the 17 dots blog.

Pakman asks, "So how is it, we wondered, that USA Today came to name Amazon No. 2?"

After talking to USA Today, we learned that:
1) USA Today called representatives of the four major labels, who declared Amazon to be only behind iTunes in sales.
2) USA Today believed that our subscription model was not relevant to the story they wanted to tell.


Pakman writes, "I’d like to address both of these points. First, allow me to point out that no sales or market share figures were cited in the USA Today piece. In fact, the article states that Amazon “won’t say how many songs Amazon has sold but will say that consumers love the experience.” Is that enough for USA Today to make such a bold pronouncement, particularly when there is plenty of widely available evidence to the contrary?"

Pakman writes, "While Amazon isn’t willing to make sales data available, we are more than happy to: eMusic sells more than 7,000,000 songs a month. Seven million tracks of independent music covering everything from Cat Power to Miles Davis. Since Amazon opened its MP3 store on September 25, 2007, eMusic has sold 40,000,000 tracks. Since November of 2003, we have sold almost 200,000,000 songs. These are huge numbers, and firmly back our claims to be the #1 site for independent music and the #2 digital music service after iTunes. Those declarations have not previously been disputed."

Pakman writes, "The only distinction between us and Amazon — aside from our service being more affordable — is that our users essentially prepay for those songs each month... None of this is at all meant as a slight on Amazon. They have been a pioneer in the world of ecommerce, and we respect the empire that they have built. But in terms of digital music, we are still on top, and will continue to be so. If we ever decide to start selling blenders, we’ll be sure to give them a call."

Read the full letter here.

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Reader Feedback: ( = registered)

Mar 27, 08 - 10:49 am Comment from: eMax

iAM there for iPhone, iPod, iSync, iMac, iWork, iSight,

Mar 27, 08 - 10:49 am Comment from: Brian Allen

He He

Mar 27, 08 - 10:50 am Comment from: Bluefin

I think yesterday's comment here at MDN pretty much sum it up...

Amazon: cite some independent sources... not vested interests.

Mar 27, 08 - 10:50 am Comment from: Sherm

Sure boys...fight over the scaps!

It's like the Nazis saying they came in 2nd place in WWII!

Mar 27, 08 - 10:58 am Comment from: maclover

that's why I buy from iTunes or Junodownload.com, every song I could want between them, no hassles or hidden agendas.
Oh yeah, ALL DRM FREE since day one at Junodownload.com



MDN word: 'asked'
"shoulda asked me, I woulda told you the real deal!"

Mar 27, 08 - 11:00 am Comment from: john

Pakman backs up MDN with the lack of fact finding on this one.
No surprise there.

Mar 27, 08 - 11:00 am Comment from: Katter

However the Nazis were on top for quite a period of time

Mar 27, 08 - 11:02 am Comment from: Macaday

As usual, the sensible commentary on all this comes from RDM:

http://www.roughlydrafted.com/2008/03/27/is-number-two-amazon-rivaling-itunes-in-music-sales-haha-no/

Mar 27, 08 - 11:03 am Comment from: Fex Incontinentia

They're number two alright.

Mar 27, 08 - 11:04 am Comment from: DRM sucks

"In fact, the article states that Amazon “won’t say how many songs Amazon has sold but will say that consumers love the experience.”

That's funny, because Microsoft won't say how many songs Zune Marketplace has sold, but will say that consumers hate the experience.

Mar 27, 08 - 11:10 am Comment from: igads

"USA Today called representatives of the four major labels"

All of a sudden, I feel like we are in Tibet and our news is being reported by the Chinese government.

Record labels = Chinese Government..............

Mar 27, 08 - 11:17 am Comment from: Winston

This topic cries out for a snarky retro gaming image of Pakman as Pacman being chased by the four ghosts: Universal ("Inky"), Warner ("Blinky"), Sony ("Pinky"), and EMI ("Clyde"). And you get bonus points if you eat the Apple! C'mon, gizmodo/engadget/Daniel Eran, get on it.

Mar 27, 08 - 11:24 am Comment from: Alex

Funny, after reading what the emusic CEO had to say, I took a look at their website and was pretty impressed. It looks like emusic has a pretty good (cheap) program. $10/mo for 30 DRM-free songs is pretty nice. Focusing on indie music is right up my alley, as well, because there is very little music coming from the majors that I find interesting.

Anyone use emusic who can comment on if it's everything it appears to be?

Mar 27, 08 - 11:32 am Comment from: IEEE1394®

Bee-U-Tee-Full! I hope to Fsck that USA Today has to print a retraction (on the same level page as the story first appeared) and also must supply this EXACT same retraction to the wires.

Fscking Fscktards.

Mar 27, 08 - 11:33 am Comment from: Scandalous

WE'RE NUMBER TWO... WE'RE NUMBER TWO... EVERYYBODY... WE'RE NUMBER TWO...

Mar 27, 08 - 11:35 am Comment from: Apple Cider

Zunior.com also sells songs in 192 or, get this, even in FLAC for the purists out there.

Mar 27, 08 - 11:35 am Comment from: Long duc Dong

Be right back. I gotta go number 2.

Mar 27, 08 - 11:45 am Comment from: wannabe

I'm not surprised that USA Today isn't very concerned with facts or reliable sources, as the typical USA Today reader doesn't understand anything beyond the headlines anyway. I don't know why they bother with the 2 or 3 content-free paragraphs that accompany each headline, other than to make their publication look sort of like a newspaper.

Mar 27, 08 - 11:46 am Comment from: kshaw

funny, never even heard of emusic...

Mar 27, 08 - 11:53 am Comment from: Famous Grouse

@Sherm

Germany surrendered first. Doesn't this put them in third place behind Japan?

Mar 27, 08 - 12:05 pm Comment from: effwerd

I could see why the music industry hates Apple. They put a song in one of their goddam ads, for fscks sake, and it shoots up the charts. That must really suck for the music industry. "Apple sells music, whaa!!! We hate that!"

Mar 27, 08 - 12:21 pm Comment from: MrScrith

@Alex

It's a good deal if you are really into the independent music, I was a subscriber for a while and like it for the most part. You get DRM free MP3 files and it works well on Mac's.

The only caveat is the monthly downloading, whatever plan you sign up for (30 per month or whatever) you need to download that 30 in that month or you loose it, there is no roll-over. The real bear is getting several full albums, then grabbing only part of an album or a couple singles to fill out the remainder of the plan before you loose it.

If you feel you can keep up with it, go for it and enjoy!

Mar 27, 08 - 12:26 pm Comment from: AntEater

"Anyone use emusic who can comment on if it's everything it appears to be?"

I've been had a subscription for a couple of years now. It's very good as long as their catalog has what you like. If you only are interested in mainstream music it's probably not the best option unless you're interested in expanding your horizons a bit. They have a lot of good old blues, jazz, classical. I'm not into indy rock but many seem to find what they like through eMusic. I've learned about several really good artists through their site that I had never even hear of before. Good stuff. Everything is ~192kb VBR mp3s unless otherwise noted. I refuse to purchase DRM restricted music (sorry Apple). If they have what you like, the price per track is excellent.

Mar 27, 08 - 12:26 pm Comment from: iDon't

Music is from the devil. Stop listening to it and be saved.

Mar 27, 08 - 12:45 pm Comment from: krautpastry

I'd say saying the Nazis came in second would be wrong seeing as parts of eastern Germany wer carved up between Poland and Russia. I'd say the this is how they finished : US, Russia, Chinese Communists, France, UK (They lost more colonies then the French did), Italy, Japan, and Germany. I have Italy ahead of the other two because they got smart and switched sides, got to keep whole homeland. Japan lost its Pacific colonies and parts of northern Japan. Germany lost East Prussia and almost all of Western Prussia, plus got split into two by the allies. I'd say Germany got the worst of it, they finished last.

Oh yeah, bogus reporting by the USA Today 'Newspaper'.

Mar 27, 08 - 01:05 pm Comment from: Anonymous©

eMusic is very good for what it is, an inexpensive outlet for indie music. They are a deserving #2.

Mar 27, 08 - 01:36 pm Comment from: Tyk

For independent music, I prefer Amiestreet.com. Pricing is based on popularity, and songs start free. I've found several very good bands this way.

Mar 27, 08 - 02:19 pm Comment from: HotinPlaya

I like Pakman's spirit!

Mar 27, 08 - 03:33 pm Comment from: MCCFR

Famous grouse…

Not wishing to be a pedant, but I think you'll find that Italy surrendered first followed by Germany and then Japan.

Mar 27, 08 - 03:46 pm Comment from: DogGone

eMusic = 200M since 2003
iTunes = 4-5B since around the same time.

Big difference

Mar 27, 08 - 03:48 pm Comment from: 84 Mac Guy

I love it when someone with facts actually calls bullshit on the media. Maybe if the "news" media actually got off their asses and did some investigation, research, and real reporting the public might learn something other than what the corporate world wants us to know. But then again, calling USA Today part of the "news" media is probably being way too generous.

Mar 27, 08 - 03:53 pm Comment from: Hm...

"Shocked! I am shocked that" USA Today is really a tabloid that belongs in the supermarket check-out lane. Has anyone seen my copy of today's birdcage liner, er, issue?

Mar 27, 08 - 05:02 pm Comment from: Military Police

I tried eMusic for classical, and although they have some, their selection is quite limited and not that great in terms of quality. I also looked at some other genres, and was not too impressed. After one or two months, I couldn't find anything else that I wanted to buy. iTunes is much better.

Mar 27, 08 - 05:38 pm Comment from: Bud Why+Zer

The reason that eMusic has done so well and maintained a significant lead of 2X to 3X the market share over its nearest competitors (other than iTMS) is simple: eMusic support the iPod. eMusic has sold MP3 files without DRM since their inception many years ago, and have done so with an easy to use interface that makes it simple to discover new music. Mr. Pakman should be commended for the eMusic service, especially in the Mac community.

Mar 27, 08 - 07:05 pm Comment from: yet another steve via iPodDailyNews

and in that same time period iTunes has sold a mere 1.... b-billion.

"Journalism" is a myth... they're just lousy bloggers with effective ad sales guys. I mean I'm sure amazon is #2 to the LABEL (who else COULD be?).... and as much as I hate the labels, it's not THEIR job to point out that independent music exists and emusic sells a lot of it.

Meanwhile having shot themselves in the foot with the amazon thing (Apple sends us 1.5 billion dollars a year, so definitely let's hurt them), they insist on emptying all six chambers.

Apple had the right idea with iTunes Plus--no DRM, higher quality, and yes, a little more money. And why not better-than-CD quality?

Generally the solution to a business/revenue problem is to look for ways to create more value for your customers--not leave them in the crossfire as you go to war with your largest distributor.

Mar 28, 08 - 07:56 am Comment from: gary

I have been an emusic subscriber since Sept 2005. It is an excellent and cheaper DRM free alternative to iTunes, especially, for non-major label artists such as including Flogging Molly, Moldy Peaches, Mike Doughty, Barenaked Ladies, Kristin Hersh, Arcade Fire, Bloc Party, Cake, Cery Matthews, Dropkick Murphys, Cracker, Johnny Cash, Gogol Bordello, Meg & Dia, Shout Out Louds, Sleater Kinney and many more. If you are listening to music, there is probably something that appeals to you. Try the service by taking advantage of FREE trial.

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