Wednesday, November 17, 2010

Check out NPR's story regarding eMusic iTunes Jr.:

What were these "terms?"
Simon Wheeler, the UK-based director of strategy for Beggars Group, said that the new pricing model by itself wasn't the problem.
"It's not that we don't like tiered pricing," Wheeler said in an email. "We do that with many services ... it was how eMusic wanted to impose the tiers onto our catalogue that was the issue."
He demurred from discussing his specific concerns with the changes eMusic had made. But Wheeler made it clear that as eMusic brought major labels into the fold, it hurt his bottom line.
"They have been an important partner for us," he wrote, "but since adding the Sony and Warner catalogues it has affected our revenues, [and] with the addition of Universal's catalogue we expect the revenues to decline again."
The decision to split with eMusic was a product of that anticipation.
"We will lose some income, but we accept that, as a price ... less painful [than] what we see the outcome of accepting the new terms would be."