April 04, 2007

The new higher quality DRM-free music will complement EMI's existing range of standard DRM-protected downloads already available. From today, EMI's retailers will be offered downloads of tracks and albums in the DRM-free audio format of their choice in a variety of bit rates up to CD quality.

...eMusic is currently making an average of $14 per customer per month on a subscriber base "well north of 250,000." This translates into an annual revenue run rate of at least $42 million and likely more. An asking price of near $100 million would thus represent just over two times annual revenue. Given that Amazon would be acquiring a paying customer base (many of whom are locked into 1-year or 2-year contracts) this seems a realistic figure and certainly a far cry from the speculative nature of a YouTube deal.

EU spokesman Jonathan Todd blamed the record companies for this situation. He said regulators considered Apple to be more a victim than a culprit. "This is an arrangement imposed on Apple by the record companies," Mr. Todd said. "The main focus of our attention is the major record companies."