Music From Independent Labels to Be Sold via Cellphones
(* Source: Robert Levine *)
EMusic, the nation’s second-largest online music seller after Apple’s iTunes, plans to announce a deal with AT&T today that will allow people to buy songs from independent labels through their cellphones, without the need to go through a personal computer.
Several services, including those run by Sprint and Verizon, let people buy songs directly over the air. But they focus on songs by mainstream performers like Prince, who has a deal with Verizon. EMusic sells music only from independent labels, a category that these days includes the new album from Paul McCartney as well as obscure punk bands. The arrangement with AT&T Mobile Music will make those songs available just as easily as the more conventional ones.
Nearly all of the 2.7 million tracks eMusic has the rights to sell will be available through the service, which will work on several handsets by Samsung and Nokia.
“We know that we have a lot of customers in the segment that eMusic is trying to reach,” said Mark Collins, vice president of consumer data services for AT&T’s wireless unit.
Record labels have long believed that selling songs in mobile phone-based music stores will encourage impulse purchases. EMusic will encourage consumers to browse, reading about bands and hearing snippets of songs to discover music they might like.
Tracks will cost more than they do over the Internet — $7.49 for five songs, as opposed to $9.99 for 30 at the online site — because of the expense of sending them over a mobile network to a user’s phone. For that price, however, users can also get another copy of the song, which they can download from the Internet as an MP3.
EMusic, which is owned by Dimensional Associates, the private equity arm of JDS Capital, currently has a marketing deal with AT&T to encourage consumers to “sideload” their phones with MP3s from its existing Internet store — meaning that they can plug their phones into their computers to transfer the music. But this will be its first time selling music on a mobile network.
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