Revamped eMusic service gets in with the indie crowd

As it has from the beginning, eMusic licenses music only from independent labels. Its library of about 500,000 songs is drawn from more than 3,700 labels.

David Pakman, chief operating officer at eMusic and managing director of its parent company Dimensional Associates, said the reborn service filled a largely unmet need. Indies on other services struggle for attention, he said, and fans can't find them "unless they already know enough about them to look for it."

Pricing for monthly subscriptions is in three tiers: 40 songs for $10, 65 songs for $15, and 90 songs for $20 after an initial free trial period that includes 50 songs. The tracks are recorded in the popular MP3 format, virtually eliminating hardware compatibility problems, and are unfettered by copy protection technology.

"You can make as many copies of songs as you like," Pakman said. "You can also play the songs on any computer and any type of MP3 player, including iPods and PDAs and many mobile phones. Music fans demand flexibility."

Not only are most people fundamentally honest, Pakman said, but he also believes that the service's features are compelling enough that music fans will pay for them.

In the United States, most estimates say major labels account for about 80% of music sales. The remainder represents a sizable niche, not to mention $2 billion in revenue, and Pakman thinks the numbers would grow if it were easier for these artists to find their audience.

"There's something exciting about being able to say that not everyone is your customer," Pakman said. "We have created the greatest collection of indie music in the world, and we've developed unique ways for avid music fans to navigate this universe."

Emusic's wide-ranging catalog includes releases by such well-known names as Bob Marley, Maria Callas, Tupac Shakur, John Lee Hooker, Ray Charles, Merle Haggard, Ennio Morricone, the Pixies and John Coltrane. But the service's main strength is its thousands of acts who could be the stars of tomorrow.

Pakman said guiding subscribers through this thicket is important to the success of eMusic. To do this, the service features editorial comment, reviews and other guides provided by such well-known music writers as author and former Rolling Stone contributing editor Michael Azerrad, former New York Times pop critic Ann Powers, National Public Radio jazz critic Kevin Whitehead and Pulitzer Prize-winning Newsday classical music critic Justin Davidson.

These experts' efforts are enhanced by sophisticated technology that includes browsing, searching, deep cross-referenced information about each track, rankings, connections to other songs and artists, views of other users' playlists based on proven preferences and more.

EMusic is wholly owned by Dimensional Associates, the private equity arm of JDS Capital Management that also owns the Orchard, an aggregator of independent labels and talent, and the Digital Club Network, which records and distributes the music played at 21 U.S. clubs.

The original eMusic was founded by Robert Kohn and Gene Hoffman in 1998, who sold it to Vivendi Universal in 2001. Dimensional Associates acquired it in November.