eMusic Subscribers Flat For Four Years
June 10, 2011 at 2:20 PM (PT)
Subscription indie music download service eMUSIC has experienced virtually no subscriber growth for four years, DIGITAL MUSIC NEWS reports. An company exec pegged subscriber levels remain in the neighborhood of 400,000, a net gain of zero since 2007. "There's been no growth," the executive shared. "Nor did we predict growth for the company's member numbers."
What little good news for the company is that its revenue per subscriber (ARPU) rose by 22%. Observers speculate that the company's problems stem from competition from longtime rivals like RHAPSODY and niche-focused upstarts like BEATPORT, free, on-demand services like GROOVESHARK and loss leader deals by AMAZON.
What's more, a recent survey by UK-based indie consortium AIM found that iTUNES, AMAZON and SPOTIFY collectively account for a whopping 94.4% of total independent sales online, which seems to quash the notion that indie fans prefer like-minded digital outlets. Which is why eMUSIC has been busy securing major-label licensing deals, most recently EMI.