eMusic: looking for ‘pixie dust’
“They started out looking for financing, but after Apple bought LaLa they began thinking that some of that pixie dust would sprinkle onto them,” said one source.
The ’source’ is quoted by the New York Post.
Under discussion is eMusic — “opportunistic stewards of capital,” the story has CEO Daniel Stein stating.
eMusic, “which sources say is several times bigger than LaLa, carved out a niche by focusing on independent artists like Vampire Weekend,” it says going on:
“Recently, it has begun broadening its reach with a deal to license the back catalog of Sony Music. Sources said the service is close to inking deals for the back catalogs of two of the remaining three major labels.”
That “helped return eMusic to marginal subscriber growth after a few years of stagnation,” says the NYP. “Sources familiar with its books said it generates between $65 million and $70 million in revenue annually from roughly 400,000 subscribers.”
“They’re not growing, but they’re not falling apart either,” a second source states. “They’re not going to give the company away. If they fail to get an attractive offer, they’ll figure out a way to revive the business.”
eMusic’s customers “currently pay flat monthly fees to download up to a certain number of songs,” adds the post.
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