MP3-only retailer eMusic hits sales milestone

15 Dec 2006
00:00

(Associated Press via NewsEdge) Online music retailer eMusic said it has racked up its 100 millionth digital music download this week, a milestone reached roughly three years after the service launched.

The sales total is a far cry from the 1 billion tracks sold in about the same time by the digital music leader, Apple's iTunes Music Store.

But despite the gulf in sales compared with iTunes, eMusic's numbers to date suggest demand for music in the MP3 format, free of copy and playback restrictions, is growing.

'Except for iTunes, the only store that is doing well online with downloads is eMusic, and the reason is because they do sell it without (playback restrictions),' said Phil Leigh, an analyst with Inside Digital Media.

EMusic, a unit of New York-based Dimensional Associates, offers downloads through a subscription plan. The company said the service has more than 220,000 subscribers.

The service racked up its first 50 million downloads a year ago. The privately held company declined to disclose financial details.

The service has managed to lure paying customers with a catalog of more than 2 million tracks by independent artists.

By comparison, online music stores run by Napster, RealNetworks, Yahoo, Apple and others sell music from major-label acts.

Still, selling music in the MP3 file format, which is compatible with the most popular digital music players on the market, including the iPod and Microsoft's Zune, has given eMusic added appeal, Leigh said.

© 2006 The Associated Press

© 2006 Dialog, a Thomson business. All rights reserved

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