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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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February 26, 2010

eMusic's Per-Song Payout for Q4 2009
by David Harrell

Back in December, I reported that eMusic's per-song payout rate for the third quarter of 2009 increased only slightly from the previous quarter, despite a major price increase, via the reduction of the number downloads allotted for various subscription plans. (Rather than a fixed per-song payout, eMusic shares 60% of its subscriber revenue, minus certain deductions, with the labels in its catalog. That shared revenue then translates into a per-track amount, based on total subscriber download activity for the quarter. In theory, reducing the number of downloads available to subscribers should increase the payout rate, but that rate is also directly affected by whether or not subscribers use all of their allotted downloads.)

For the fourth quarter of 2009, however, the per-song eMusic payout rate increased more than 10%, from 34.2 to 39 cents for single song downloads. This amount is the largest payout rate we've received in the five+ years that we've been in the eMusic catalog. For comparison, here are the eMusic per-song payout rates for the past four quarters:

Q1 2009 30.5 cents
Q2 2009 33.4 cents
Q3 2009 34.2 cents
Q4 2009 39 cents

While the eMusic rate is significantly less than the payout for 99-cent iTunes downloads, it has increased steadily over the past year and is now 56% of the standard iTunes payout of 70 cents. Given that new eMusic subscribers pay more for their downloads than older subscribers (while eMusic adjusted the plans for all subscribers last year, most existing subscribers were given plans that were more generous than those available to new subscribers), it's likely that the payout rate will continue to rise somewhat as eMusic adds new subscribers and/or loses older ones. Given that per-download eMusic prices are lower than those in the iTunes store, the subsequent label payout rates will, of course, always be less.

related: eMusic's Per-Song Payout for Q3 2009, eMusic's Per-Song Payout for Q2 2009, Sony and eMusic: Why the Per-Track Label Payout Might Not Change

tags: digital music eMusic eMusic royalty iTunes

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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