Wired interviews eMusic CEO Danny Stein about their recent price increases and the addition of Sony’s back catalog.
Wired.com: What do you have to say to longtime subscribers who are so upset about prices going up?
Stein: We knew it was going to be tough breaking the news about the price increase, so we’ve been listening to all the reactions. We appreciate that our users have such a strong connection to eMusic and are very passionate and vigorous music fans. As I said at the top of this call, the price change is something that all of our labels have been asking for, for a long time, and it’s really a necessary move for us to maintain a viable business. Not only that, but to support the independent label community and their artists, through royalties. We still offer one of the best values for digital music. We’re about 50 percent cheaper than iTunes and Amazon. And we hope those people will stick with us and see what we do with the Sony catalog and all the other labels that we may get in the future. We hope that they’ll give it a shot and stay.
Many eMusic subscribers are upset about their announced price increases that more than double the price per track they got before. However, surely there are subscribers that saw the writing on the wall with 24¢ tracks and labels like Epitaph pulling out.
50¢ for a track isn’t that bad, but it still stings when you’ve been getting them for less than half that.