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eMusic is an online music and audiobook store that operates by subscription. In exchange for a monthly subscription eMusic users can download a fixed amount of tracks to their MP3 players per month. It is headquartered in New York City with an office in London and owned by Dimensional Associates. .

eMusic was the only other provider of music to ipods other than iTunes due to it offering DRM-free music to its customers.

Features
eMusic caters to knowledgeable music lovers in their 20's to 50's, who mostly purchase downloads of albums as opposed to individual songs, and utilize the site's hundreds of original articles and reviews each month. As of March 2011, eMusic has more than 12 million tracks up from 9 million tracks in September 2010. New subscribers typically receive 45 free downloads during their seven-day trial. The trial account turns into a billable subscription account after seven days. Refunds are possible under certain circumstances by contacting eMusic customer support. Subscriptions allow users to download a number of tracks per 30-day period.

eMusic currently offers a number of Membership plans, including Basic, Plus, Premium and Fan. The Basic Membership Plan costs $ 11.99 in the United States. Every 30 days the download limit is reset (regardless of how many songs were downloaded). eMusic also offers "booster packs" to subscribers, which expire after 90 days rather than after a month, and are consumed when subscribers download tracks beyond their monthly allotments. Earlier business models prior to Dimensional Associates' ownership supported an "all-you-can-eat" download subscription. For a monthly fee, customers were able to download as many tracks as they wished from the service.

eMusic was one of the first sites to sell music in the MP3 format, beginning in 1998. It differs from other well-known music download services (such as the iTunes Store and Amazon MP3) in that it is a download-to-own subscription service. However, in 2011 eMusic took its first, limited step into streaming in an effort to help users discover unfamiliar tracks and artists more easily.

In 2006, eMusic added two European versions of its online store: 'eMusic UK' and 'eMusic Europe'. Current subscribers to the global site that were within the European Union had their membership transferred to the appropriate European store. eMusic UK and eMusic Europe have higher prices compared to their North American counterpart, partially due to the extra sales taxes which these stores are now subject to. However, the changeover also included access to labels previously unavailable to non-European customers, notably London-based Domino Records and artists such as The White Stripes and Mogwai. It is also notable that the European version of the store is for customers within the European Union, not customers within Europe.

eMusic early growth may have been due to its early support of the MP3 format, lack of digital rights management (DRM) encoding and low prices; all concepts advocated by the Open Music Model. But the real reason for eMusic's growth is this: It was the only online music store aside from iTunes that sold tracks that could be played on an iPod. In 2009 a pricing increase in Emusic business model enabled Sony provide some of its catalogue. Tracks from Sony catalogue over two years old were then made available to eMusic customers. Prior to July 2009, eMusic mainly sold music from independent labels.

eMusic share the revenues with artists whom have submitted music via digital distribution service providers such as CD Baby, TuneCore , Nimbit , State 51 , EmuBands. I eMusic has not had significant growth in subscribers maintaining over 400,000 subscribers since 2007.

eMusic was the first digital retailer to sell DRM-free downloadable audiobooks in the MP3 format beginning in 2007. Audible.com, its largest competitor, offers audiobooks with digital rights management in the .aa format.

eMusic launched a Canadian version of its store in 2008.

File Format Support
Due to the contentious nature of DRM encoding that was initially used by competing download services, eMusic won early praise for not including any in their own files, despite the fact that it cost them contracts with the major record labels. eMusic openly stated that this was a business move that has greatly aided the site's popularity. While the site currently sells music from the four major record labels, the company has stated that it will remain true to its independent roots and build new product features that are geared towards members who are independent-minded, not mainstream pop-culturists.

eMusic stores a record of user purchases on its internal servers, but does not place any purchaser information inside the tracks that are sold. The service uses the LAME mp3 encoder to produce variable bit rate MP3 files. Analysis on the files show that the preset used is alt-preset-standard, a high quality VBR preset aiming at an average bit rate around 192kbit/s. However, and contrary to the information published on the web site, files can sometimes be found in lower quality bit rates, including for recent releases. The preview streams provided for each song match the bit rate quality of the full download files.

Music Catalogue
eMusic has contracts with both the independent labels and the four major music labels in the United States. Most of eMusic's contracts are with independent labels, giving the service a reputation for primarily offering indie rock, indie pop, heavy metal, punk rock, jazz and classical music. eMusic highlights its offerings through a host of exclusive editorial content, along the lines of monthly "editor's picks", columns and guides.

The site's alternative (or "indie") rock selection has also been aided by the rise in widely-distributed but privately owned labels such as Kill Rock Stars and Matador Records, who have a fair amount of big-name talent on their rolls (e.g. Cat Power, The Decemberists, Interpol and Sleater-Kinney, who have been among eMusic's top-sellers). Music from other popular indie labels includes Merge Records (Spoon, Arcade Fire, Lambchop), K Records (Modest Mouse, Built to Spill), Touch and Go Records (Mekons, Girls Against Boys), and TVT Records (Lil Jon, Ying Yang Twins, Guided By Voices).

In 1999, eMusic made headlines by releasing Long Tall Weekend by They Might Be Giants, the first internet-only distributed album by a major artist. The band also went on to release a series of monthly, exclusive rarities collections (known as "TMBG Unlimited") through the service in 2001 and 2002. John Flansburgh said that "Getting a half dozen or dozen unreleased songs out each month provides an ‘ultimate fan club’ experience."

In 2004, with the change from an unlimited download subscription model to a set-track subscription download, eMusic increased their catalogue content over the next few years, particularly in the Indian soundtrack and Indian classical genres and in the classical music genre and added such labels as Saregama, Naxos, BIS, Chandos, Harmonia Mundi and Telarc.

In June 2006, eMusic added new music from V2 Records in the U.S. The label is one of eMusic's highest-profile additions thus far, with multi-platinum acts Moby and The White Stripes and critical favorites including Grandaddy. However, this music is not available to eMusic users in many other countries and while Moby is still available at present, the White Stripes catalog was removed until Warner Bros. was brought on.

In June 2007, eMusic added perhaps its biggest star yet to its lineup: Paul McCartney of The Beatles. His album, Memory Almost Full, is also the first release on Starbucks' Hear Music label.

The eMusicLive Venue Network is 22 independent clubs in the US where live shows are recorded and offered to eMusic subscribers. Numerous shows are recorded every week. In addition to subscription sales, recorded CDs are offered for sale at the venue immediately after the event. EMusic plans to establish kiosks where the music can be delivered directly to MP3 players or flash drives.

Beginning September 18, 2007, eMusic began to offer audiobooks in MP3 format.

On April 2, 2008, eMusic added The Rolling Stones when they were on their ABKCO label. This includes their music from 1964–1970, plus any compilations made thereafter by ABKCO. The availability of The Rolling Stones' catalog ended on May 3, 2008.

On June 1, 2009, eMusic struck a deal with Sony Music Entertainment to sell music released two years ago or earlier.

On January 12, 2010, eMusic struck a deal with Warner Music to sell music from its catalog, including music from the Warner Brothers, Atlantic, and Rhino labels, making them the second of the Big Four to enter an agreement with eMusic.

In November, 2010, eMusic expanded its catalog to include Universal Music. With the massive expansion, eMusic will also introduce a new pricing schedule that will set individual song prices based upon the song's popularity. Song credits will no longer be used for subscribers. Instead, eMusic subscribers will be given dollar for dollar credits to spend at the site. The labels Beggars Group, Domino, and Merge will no longer be on eMusic. In addition, eMusic changed its policy on redownloading so that customer can no longer go to their download history and redownload tracks or albums.

By spring 2011, eMusic had deals with all four major record companies, Universal Music, Warner Music Group, Sony Music Entertainment and EMI Music. Its May 2011 agreement with EMI also included the jazz label Blue Note. Despite the expansion of its catalogue, the company claims to maintain strong connections with independent music labels.

Company Ownership History
The original eMusic was started in March 1995 by Mark Chasan as the fourth online CD retailer. eMusic and Nordic Music (owned by Kent Kiefer) formed a joint venture in February 1998 to become the first digital media retailer and sold the first MP3 players on the internet. eMusic, then headed by Chasan and Kiefer, purchased Guy Giuliano's internet radio service GBS Radio Networks. The new consortium launched the first online radio network LoudRadio, to broadcast over a terrestrial radio station via KLOD-FM in Flagstaff, Arizona.

The company now known as eMusic was founded by Gene Hoffman, Bob Kohn and Gary Culpepper on January 8, 1998 and originally named GoodNoise Records. In October 1998, GoodNoise acquired eMusic.com along with on-line music pioneer Internet Underground Music Archive (IUMA). In November 1999, eMusic acquired main rival Cductive and in December 1999 acquired Tunes.com, which operated Rollingstone.com and DownBeatJazz.com. Then in 2001, the major label Universal Music (then a division of Vivendi Universal) bought eMusic.com for USD 24.6 million.

In November 2003, the service was purchased from VU Net USA by a New York-based private equity arm of JDS Capital Management, Inc. Following a contentious period during which information disseminated by the company was limited, it was relaunched in 2004. Relaunch was soon followed by a new format for the eMusic site, significant increase in both editorial and music content and an eventual price increase for most subscription levels. Commensurate with this relaunch, David B. Pakman became the CEO of the company until leaving in November 2008.

Adam Klein is currently eMusic's CEO and President. Adam has more than 20 years experience in leading strategic, operation and organizational change with both established and technology-led media companies.

Richard Caccappolo was named the company's Chief Technology Officer in May 2011. Richard brings over 20 years of experience in e-commerce, digital monetization, new media and product development.