fair music weblog

eMusic is the second-largest digital music service behind iTunes and the world’s largest retailer of independent music. In mid-August, it announced that it has crossed the 150 million downloads milestone. The Hollywood Reporter’s business editor Georg Szalai recently talked to eMusic president and CEO David Pakman about eMusic’s strategy and audience. In the interview Pakman says “DRM in downloaded music will be gone. Its days are numbered.”

eMusic’s business model is based on subscriptions. Their customers, even if they use the service infrequently, can keep their music forever. The focus of the music service is on people 25 and older, which counts for 73% of the market, says Pakman.

Their customers, he describes, is typically looking for something other than what’s played on the radio, often looking to be reconnected to music they used to listen to. And customers don’t want to buy music that doesn’t play everywhere.

Pakman: “EMI totally understands that now. I think they made a courageous move. Obviously, the indies have done this since the beginning, and the indie market share has grown considerably in the last five or six years, while the majors have declined. They must be doing something right. I think another major will take the same approach this year, and then the other two will do it next year.”

Pakman says that there are a couple of bands eMusic has helped expose to a much larger audience than they otherwise would have, such as Beirut or The National.

Dialogue with eMusic CEO Pakman, part 1 - Hollywood Reporter

Dialogue: More with eMusic’s Pakman, part 2 - Hollywood Reporter