Digital Audio Insider -- the economics of music and other digital content

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Digital Audio Insider is David Harrell's blog about the economics of music and other digital content. I write from the perspective of a musican who has self-released four albums with the indie rock band the Layaways.

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September 25, 2009

eMusic's Per-Song Payout for Q2 2009
by David Harrell

The eMusic payout for the second quarter of 2009 is significant one, as it's the last payout for subscriber downloads that mostly occurred before two major changes to subscription music service: the addition of older Sony material to the catalog and the restructuring of subscription plans that reduced the number of downloads allotted each month.

Our second quarter 2009 eMusic sales just showed up in our CD Baby account and we received 33.4 cents (before CD Baby's 9% commission) per download, almost exactly the same as the 33.5 cent payout for the previous quarter.

Because eMusic pays labels a percentage of subscriber revenue, there is no set per-download payout. Instead, the payout can vary based on the overall download activity of subscribers. Digital breakage, which occurs when subscribers don't use all of their allotted downloads, results in a larger payout, when calculated on a per-download basis.

In theory, the restructuring of the subscription plans should increase the per-download payout, as subscribers now receive fewer downloads, paying more on a per-track basis. However, after the introduction of the Sony material and re-working of the subscription plans, I wondered if there would be much change. Historically, the average breakage rate at eMusic has been quite high. Based on the subscription prices and the payouts I've received for my own music, I'm guessing it has been in the 40% to 50% range. But if the availability of the Sony material -- coupled with the fact that subscribers have fewer downloads to use each month or quarter -- results in significantly less breakage, it might mean little or no increase in the payout rate to labels.

I'll report back as soon as I see our eMusic payouts for the third quarter of the year!

related: Sony and eMusic: Why the Per-Track Label Payout Might Not Change, eMusic's Per-Song Payout for Q1 2009

tags: digital music eMusic digital breakage

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THE LAYAWAYS

Out Now -- "Maybe Next Year" -- The New Holiday Album:

"This is a sweet treat, deliciously musical without being overbaked for mass media consumption." -- Hyperbolium

"Perfect listening to accompany whatever holiday preparations you may be making today." -- Bag of Songs

O Christmas Tree - free mp3 lyrics and song details
Away In A Manger - free mp3

Download from eMusic, iTunes, Amazon MP3, or Bandcamp. Listen to free streams at Last.fm.

"...about as melodic and hooky as indie pop can get." -- Absolute Powerpop

"Their laid-back, '60s era sounds are absolutely delightening." -- 3hive

"...melodic, garage-influenced shoegaze." -- RCRD LBL

Where The Conversation Ends - free mp3
January - free mp3
Keep It To Yourself - free mp3

Download from eMusic, iTunes, Amazon MP3, or CD Baby, stream it at Last.fm or 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

"Catchy Guided by Voices-like rockers who lay it on sweetly and sincerely, just like Lionel Richie." -- WRUV Radio

Silence - free mp3 lyrics and song details
The Long Night - free mp3

Download from eMusic, Amazon MP3, or iTunes, stream it 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, stream it at Last.fm, Napster, or Rhapsody.

More Layaways downloads:

the layaways website