EMusic
| Company type | Private |
|---|---|
| Industry | Digital music, Audiobooks |
| Founded | 1998 |
| Founder | Mark Chasan |
| Headquarters | New York City , United States |
Area served | International |
Key people | Daniel C. Stein (CEO and Chairman 2003–2014), Madeline Milne (Managing Director for Europe 2006–2013) |
| Products | Digital music downloads, Audiobooks |
| Owner | TriPlay |
| Website | www |
eMusic is a digital platform specializing in music and audiobooks, operating on a subscription basis that permits users to download a predetermined number of MP3 tracks every month. Established in 1998, the company is based in New York City with an additional office located in London, and it is currently owned by TriPlay.
Company ownership history
The origins of eMusic trace back to March 1995 when Mark Chasan launched it as an online retailer for CDs, driven by a vision to deliver affordable digital music directly to consumers. Initially, the focus was on enhancing audio streaming quality and download speeds, which later transitioned into offering digital music files for online purchase.
In February 1998, Chasan formed a partnership with Nordic Entertainment, owned by Kent Kiefer, to broaden eMusic’s music library and became the pioneer digital media retailer to sell MP3 players through the internet. Both entities were subsequently acquired by Goodnoise Records—controlled by Gene Hoffman, Bob Kohn, and Gary Culpepper—which also took over the Internet Underground Music Archive (IUMA). The combined company retained the eMusic brand and went public on Nasdaq in 1999.
The company further expanded by acquiring Guy Giuliano’s GBS Radio Networks, which launched LoudRadio, recognized as the first internet radio network transmitted via terrestrial radio stations. Additionally, eMusic purchased competitors such as Cductive and Tunes.com, operators of Rollingstone.com and DownBeatJazz.com respectively. In 2001, Universal Music (then part of Vivendi Universal) acquired eMusic for $24.6 million.
In November 2003, JDS Capital Management’s private equity division purchased eMusic from VU Net USA. Following a period of limited public updates, eMusic reemerged in 2004 with improved editorial features, a broader music selection, and revised subscription pricing. David B. Pakman held the CEO position until November 2008.
On October 21, 2015, Israeli startup TriPlay took ownership of eMusic, aiming to expand its international reach and strengthen its digital media footprint.
Features
Founded in 1998, eMusic was among the earliest digital retailers to offer MP3 files without DRM restrictions. In March 2014, it enhanced its content portfolio by launching Wondering Sound, an online music magazine featuring archived materials, artist interviews, news updates, and in-depth articles.
By March 2011, eMusic’s library had grown to over 12 million tracks from 9 million the previous year. The platform provides several subscription tiers—Basic, Plus, Premium, and Fan—with monthly fees granting access to a set number of downloads. Subscribers can also acquire additional "booster packs" for extra downloads beyond their plan limits. Earlier versions of the service included unlimited downloads for a fixed monthly price.
Distinct from services like iTunes and Amazon Music that emphasize purchasing individual tracks or streaming, eMusic primarily functions as a download-to-own subscription model but incorporated limited streaming options starting in 2011 to aid music discovery.
In 2006, eMusic introduced localized stores for Europe—eMusic UK and eMusic Europe—featuring catalogs from labels such as Domino Records and artists including The White Stripes. These European platforms have higher pricing due to applicable sales taxes but offer access to an expanded selection of labels.
The company’s early success was largely due to its adoption of MP3 format without DRM constraints and competitive pricing consistent with the Open Music Model. Around 2009, pricing adjustments were made upward while adding Sony catalog titles older than two years, expanding beyond its previous concentration on independent labels.
Revenue sharing with artists is facilitated through partnerships with digital distributors like CD Baby, TuneCore, Nimbit, State 51, and EmuBands. Since 2007, subscriber numbers have remained stable at over 400,000 users.
In 2007, eMusic became the first digital retailer to provide DRM-free downloadable audiobooks in MP3 format as an alternative to Audible.com’s DRM-protected .aa files. The company also launched a Canadian storefront in 2008.
On July 14, 2016, following acquisition by TriPlay, eMusic unveiled eStories, an audiobook service offering a catalog of approximately 80,000 titles priced at $11.95 each with discounts available for additional purchases.
File format support
eMusic initially earned recognition by providing music files without DRM restrictions, a deliberate business choice that led to losing deals with major record companies but significantly increased its user base. While it currently offers music from the four leading labels, eMusic continues to prioritize its foundation in independent music, catering mainly to niche audiences with specialized product features.
The platform retains purchase histories internally rather than embedding buyer data within the audio files. It employs the LAME MP3 encoder utilizing a high-quality variable bit rate averaging approximately 192 kbit/s, although some tracks may occasionally feature lower bit rates. Streaming previews are delivered at the same quality level as full downloads.
Music catalogue
eMusic’s agreements predominantly involve independent record labels, solidifying its reputation across genres such as indie rock, heavy metal, punk, jazz, and classical music. Editorial elements like monthly "editor's picks" and curated guides enhance the user experience.
The catalogue is strengthened through collaborations with prominent indie labels including Kill Rock Stars, Matador Records (home to artists like Cat Power and The Decemberists), Merge Records, K Records, Touch and Go Records, and TVT Records. In 1999, eMusic made industry news by releasing They Might Be Giants’ Long Tall Weekend, notable as the first internet-exclusive album by a major artist.
Transitioning from unlimited subscriptions to fixed-track plans in 2004, eMusic expanded its offerings to include Indian soundtracks and classical music, incorporating labels such as Saregama, Naxos, BIS, Chandos, Harmonia Mundi, and Telarc. V2 Records joined in 2006 with multi-platinum acts like Moby and The White Stripes; however, availability differs depending on the region.
In 2007, eMusic added Paul McCartney’s Memory Almost Full, a key release associated with Starbucks' Hear Music label. The eMusicLive Venue Network captures performances at 22 independent US venues for subscribers, enabling immediate CD purchases and planning for digital delivery kiosks directly at venues.
Broadening its scope beyond music tracks, eMusic launched MP3 audiobooks in 2007. Significant catalogue updates included The Rolling Stones’ ABKCO-era recordings in 2008 (available for a limited time) and back-catalogue agreements with Sony Music in 2009. By 2010, deals with Warner Music and Universal Music further expanded the selection; Universal’s inclusion prompted a shift from track-based credits to dollar-denominated credits. Some independent labels such as Beggars Group and Domino departed during this period while Merge Records rejoined in 2015. Restrictions on redownloading content also intensified.
By 2011, eMusic maintained licensing agreements with all four major labels—Universal, Warner, Sony, and EMI—while preserving strong connections to independent labels. However, in September 2014, the company announced a strategic pivot to focus solely on independent labels, withdrawing mainstream catalogues from Sony, Universal, and Warner due to complexities in distribution arrangements between independents and major companies.
In 2018, several distributors including The Orchard (a Sony subsidiary), Naxos Records, and INgrooves removed their catalogues following delays in payments from eMusic, adversely affecting the company’s market position.
Executive staff
The leadership team comprised:
- Chief Executive Officer and Chairman – Daniel C. Stein (2003 – December 2014)
- Managing Director for Europe – Madeline Milne (April 2006 – April 2013)
Cductive
Cductive was among the pioneering online music retailers, established in 1996 by Tom Ryan, John Rigos, and Alan Manuel. The service provided 99-cent mp3 downloads alongside personalized CD compilations sourced from numerous independent record labels. In December 1999, eMusic purchased Cductive, incorporating the majority of its artists and labels into its catalog.