eMusic to Raise Cost of Basic Subscription Plan

Authored by Mark Hefflinger on June 17, 2008 - 12:30pm.

New York - Digital music service eMusic on Tuesday announced a "modest price increase for some of its users," which will see the cost of its monthly Basic Plan raised from $9.99 to $11.99.

The company, which also announced that its service has grown from 250,000 to nearly 4 million tracks over the past for years, has recently seen some notable independent labels -- including Epitaph and PIAS -- pull their music from the service over what they say are revenue shares that are not on a par with competing services.

"Our cost of doing business has risen steadily. We want to share more revenue with the thousands of artists and labels who call eMusic home, and we want to attract even more to our community," the company wrote in a FAQ explaining the price increase.

"We found a way to do this while keeping the value of eMusic intact for you. Of course no one likes the idea of a price increase but look at this way: you're getting 10 additional tracks per month for less than the price of a latte."

While being asked to pay more, existing Basic Plan subscribers will now be receiving 40 downloads per month, instead of the standard 30 that new Basic Plan subscribers will be getting.

In August, grandfathered Basic subscribers will also receive a one-time 10-track booster pack.

The price increase will affect only subscribers to the company's Basic Plan.

Related Links:
http://www.emusic.com/messageboard/viewTopic.html?topicId=96830

http://www.emusic.com/help/notification_faq.html
tags: Marketing | Music | eMusic | Retail |

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