snapshot 4/23/08

eMusic Adds Classical Labels
eMusic announced a number of larger ndependent classical label signings including UK-based Chandos Records, Telarc, and Harmonia Mundi. Other classical labels recently added include Naïve, Vox, Lyrita, Hungaraton, Supraphon, and CSO Resound, the Chicago Symphony’s in-house recording label. These additions will be available on the website both in the US and worldwide. eMusic says that more than half of its subscribers who downloaded one of two recent free classical music samplers went on to purchase additional classical music. Of those, nearly one third had never downloaded a classical track before.


Slow Slog for Amazon's Digital Media (requires subscription)
Jeetil Patel, who tracks the company for Deutsche Bank, estimates Amazon has invested $300 million in the [digital-media] initiatives over the past three years. But he puts the annual revenue they have produced so far at less than $100 million, a fraction of Amazon's $14.8 billion total.

The Amazon efforts attracted wide attention initially, but signs of success have been scant. The company's Unbox download service of TV shows and movies has attracted a very small audience, analysts say. Its other new digital businesses, including the Kindle e-book reader and the literary-shorts program, remain fledgling businesses at best. Amazon in February sold its European online DVD rental business to LoveFilm International, though it is now the biggest shareholder in LoveFilm.

Recent data are more promising. In February, the single month for which NPD data are available, Amazon's MP3 store was in second place, ahead of Wal-Mart Stores Inc. and behind iTunes. NPD discloses only where companies rank, not specific sales figures or market-share percentages.


Interview: Microsoft's Rob Bennett defends DRM decision
Bennett is the Microsoft executive who notified former customers of the now defunct MSN Music service on Tuesday that the company would no longer issue DRM keys for their songs after August 31. This means that, while former customers can listen to their music on authorized computers for as long as the hardware lasts, they won't be able to transfer songs to a new PC after that deadline.

The reason for shutting down the DRM-licensing servers was "every time there is an OS upgrade, the DRM equation gets complex very quickly," said Bennett, general manager of entertainment, video, and sports for MSN. "Every time, you saw support issues. People would call in because they couldn't download licenses. We had to write new code, new configurations each time...We really believe that, going forward, the best thing to do is focus exclusively on Zune."