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Sep15
eMusic as a business model
Thought provoking piece over here, which states how iTunes is barely making a cent from its music store - using it as a front to sell more iPod hardware. eMusic however - the business model used by Microsoft's Zune is where the money really is.

From the labels point of view, eMusic is simply great for business. While it costs eMusic much more to run its store than Apple - because it's offers much more than an "airport kiosk" looking to attract impulse hit-buyers - it's more profitable. eMusic employs over a hundred people providing editorial content, and it works very hard on expert-generated and user-generated recommendations. But the value for labels is greater, because the eMusic store exposes material people woudn't otherwise see. (source)

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