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May 31, 2007 An Increase in eMusic Payoutsby David Harrell
Some more eMusic sales showed up in our CD Baby account last week. It looks like they're from the quarter ending 3/31/07 and we received 27.8 cents a track after CD Baby took its 9% cut. Adding that 9% back in gives a per-track payout from eMusic of 30.5 cents a track, the most we've ever seen for eMusic sales. (It might be an error, but there was also a single download -- supposedly from the same sales period -- that paid 18.9 cents from eMusic. If not a reporting error, the only explanation I can think of is a lower payout rate for the "free" tracks offered to trial subscribers and the bonus tracks subscribers can earn by referring new subscribers.) That's a decent-sized jump from the 27.4 cents a track payout rate from our last reported eMusic sales. There are some details about the eMusic model that I haven't been able to confirm, but per-track payouts to labels/artists are basically a function of the average track "price" for subscribers and subscriber download activity. If the per-song payouts are increasing, it's likely a result of an increase in average song price (based on subscription plans, which changed late last year), a decrease in overall subscriber usage, or some combination of the two factors. Update: Just to clarify, the "per-song" price is simply another way of looking at total subscriber revenue, which is the basis for eMusic's sharing model. It doesn't really matter if you break it down to the individual track "price." While I prefer to think of it that way when analyzing the payouts, the basic equation for computing the per-song payout from eMusic is to divide the portion of total subscription revenue that is shared with labels by the total number of subscriber downloads for the time period. One final note: these numbers are all for a self-released musician distributed via CD Baby. It's certainly possible that there are different payout rates for labels working directly with eMusic (or the Orchard). tags: digital music eMusic mp3 link 2 comments e-mail this post Digg this post follow DAI on Twitter |
Subscribe: Add this blog to Del.icio.us, Digg or Furl The Digital Audio Insider Twitter feed: Looking to hire? Looking for a job? Check out the digital audio insider job board. Most Popular Posts The New Music Equation By the Numbers: Using Last.fm Statistics to Quantify Audience Devotion Lala.com Owes Me Sixty Cents Economists, Radiohead, and Bob Mould To Free or Not to Free Price Elasticity of Demand for McCartney The Digital Pricing Conundrum series: Part One Part Two Part Three Part Four The Layaways (my band) New album: "The Space Between" is now available from eMusic. "It can't be easy to make something this basically simple sound so fulfilling; it if were, everyone would do it." -- Fingertips "The Layaways have a unique sound with great drum fills and airy vocals that will make you tap your feet and sing along." -- VIC Radio Keep It to Yourself - free mp3 All Around the World - free mp3 Come Back Home - free mp3 Download from eMusic, iTunes, Amazon MP3, Lala.com, or CD Baby, listen to free streams at Last.fm and Napster. "The Layaways make fine indie pop. Hushed vocals interweave with understated buzzing guitars. The whole LP is a revelation from the start." -- Lost Music "A wonderfully crafted recording built around tasteful songwriting and musicianship..." -- PopMatters Silence - free mp3 The Long Night - free mp3 Download from eMusic, Amazon MP3, or iTunes, listen to free streams at Last.fm, Napster, or Rhapsody. "These are songs that you want to take home with you, curl up with, hold them close -- and pray that they are still with you when you wake up." -- The Big Takeover Let Me In - free mp3 Ocean Blue - free mp3 Download from eMusic, Amazon MP3, or iTunes, listen to free streams at Last.fm, Napster, or Rhapsody. More Layaways downloads: the layaways website Current/Recent Reading and Listening:
It's written as a how-to guide for those looking to become music supervisors, but I found it to be a good resource for musicians (like me) who are trying to get their music used in movies, TV, etc. |