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From "Jaimie Vernon" <bullseyecanada@hotmail.com>
Subject Re: for Stewart and the subscribers to eMusic
Date Tue, 08 May 2007 14:38:39 -0400

[Part 1 text/plain (2.8 kilobytes)] (View Text in a separate window)



At Date: Tue, 08 May 2007 14:05:27 Stewart wrote:

>>That leaves $0.125 per song for the artist/label to share....remove the 
>>mandatory $0.085 for the mechanical royalty to the songwriter and you're 
>>left rubbing four pennies together.
>>
>>The iTunes model is $0.99 per download. iTunes' fee is $0.18 per track 
>>leaving $0.81 to be divvied up. Subtract the mechanical royalty and that 
>>leaves a healthy $0.725 between artist/label.
>>
>>THIS is why the indie labels are pulling out of eMusic.
>
>It's still kinda shortsighted.
>
>The number of whole albums I have downloaded via eMusic in the last six 
>years undoubtedly numbers in the low four figures by now. However, because 
>I consider eMusic downloads the rough equivalent of those cassettes I used 
>to make of my friends' albums in high school, I've since purchased "real" 
>CDs of a huge number of those downloads, and usually, if I like an artist I 
>took a flyer on via eMusic, I purchase the proper CD of their later albums. 
>  The labels and artists may not make much money out of the downloads 
>themselves, but the PR value is inestimable.
>
>Number of whole albums I've purchased through iTunes since 2003: big fat 
>goose egg.
>
>In fact, total number of single songs I've purchased through iTunes since 
>2003: 79.
>
>I hope the labels and artists aren't spending that $57.27 all in one place.

Did I mention the digitizing fee to get the songs ONTO eMusic in the first 
place? It's $50.00 USD per album (whether it's 6 songs or 17 songs per 
disc)...versus $0.08 per song on iTunes (that's part of the $0.18 they take 
off the top).

That means we need 1250 downloads from any given album just to break even. 
Promo tool or not, we're losing money just being ON eMusic (never mind 
giving away the songs dirt cheap)....which is why Bullseye never signed up. 
Or to Puretracks in Canada where the digitizing fee is $100 CDN per CD.

You're in the minority in your buying habits, Stewart. Most of the people 
I've sold downloads to on the cheap or I've given stuff away to have NOT 
gone back to purchase full CDs. They've gladly taken the material and run 
off with it....gratis. You really want to test-drive songs before a full CD 
purchase? We offer plenty of streaming material at Yahoo, MusicNet and our 
own Live365 radio station.



Jaimie Vernon,
President, Bullseye Records
http://www.bullseyecanada.com

SWAG:
http://www.cafepress.com/bullseyecanada
BULLSEYE LIVE 365 RADIO:
http://www.live365.com/stations/bullseyerecords

Author, Canadian Pop Music Encyclopedia
http://jam.canoe.ca/Music/Pop_Encyclopedia/

http://www.myspace.com/jaimievernonsmovingtargetz

_________________________________________________________________
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