EMUSIC PASSES THE 25,000 MARK IN PAID SUBSCRIBERS

September 25, 2001
Press Release

 





MP3 Subscription Service is the Internet's Most Popular


REDWOOD CITY, Calif. - September 25, 2001 -- EMusic.com today announced that its paying subscriber base has topped 25,000, making it the Internet's most popular MP3 music service. EMusic is a first-of-its-kind MP3 music service that offers avid music fans unlimited downloads for one low monthly fee. The service, which launched in July 2000, features a growing collection of more than 180,000 songs and 15,000 complete albums from more than 700 independent labels.

"During the past year -- in which pirated music has been freely available on the Internet -- EMusic has been steadily growing its paid subscriber base," said Gene Hoffman, CEO of EMusic.com. "Our success in attracting paying subscribers is a testament to the fact that consumers are willing to pay for music services that offer value and flexibility. It also demonstrates the tremendous potential for this business.

"We've learned a great deal over the past 12 months," said Hoffman. "Our subscribers are passionate about music and have strong opinions about what online music should offer. Avid music fans want the ability to listen to a lot of music, not only from mainstream artists, but also from new artists that they have discovered through the service. They also seek content that is hard or impossible to find on CDs - such as unique recordings, rare live material, and releases that are rare or out-of-print. They also want to be able to listen to it in their cars, on their portable MP3 players, on CDs and on multiple computers. We think our early success in this new market is a result of addressing the needs of these avid fans.

EMusic Delivers Key Subscription Features
According to a recent Jupiter Media Metrix report, 59 percent of online music buyers are interested in subscription-based music services. The study, which was released at the recent Jupiter Media Metrix Plug.In conference, also found that quality is the most important factor influencing a consumer's decision to subscribe to a music service.

Among the primary features that consumers want in a music subscription service are the ability to burn CDs, and the ability to listen to songs on portable devices. The research also found that guaranteed file quality, guaranteed virus free music files and guaranteed high-speed transfer connection were the primary features that consumers would be willing to pay for in a subscription service. EMusic is the only music service currently delivering on these requirements. EMusic offers:

· Unlimited downloads for a low monthly fee
· Guaranteed quality MP3s encoded at 128 kbps
· The confidence that EMusic MP3s are virus free
· Guaranteed high-speed transfer connection
· The ability to download the tracks multiple times (and an archive of all downloaded tracks)
· Rights to make multiple copies of the MP3s for personal use
· The ability to transfer the music to virtually any digital music device
· Ability to create MP3 CDs or standard audio CDs
· The confidence that artists and songwriters are paid for every download
· Expert editorial and recommendations to help music fans discover new artists
· A constantly expanding catalog of music from over 700 of the world's leading independent labels.

EMusic has been one of the pioneers in the digital distribution of music. The company was the first to sell MP3s from established artists when it launched in 1998. Two years later, EMusic became the first company to launch a downloadable music subscription service. Unlike other service that offer tracks from unsigned artists, EMusic's service features catalog and new releases from many of the world's premier independent labels. Over 50 percent of the revenue generated though EMusic is paid to recording artists and songwriters.

EMusic is now offering a free 30-day trial to its MP3 music service at http://www.emusic.com.

About EMusic
EMusic.com (http://www.EMusic.com) is a revolutionary new music discovery service that allows fans to download as much music as they desire for as little as $9.99 a month. Through direct relationships with well-known artists and exclusive licensing agreements with over 700 independent record labels, EMusic offers an expanding collection of over 180,000 MP3s for download.


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NOTE: EMUSIC is a registered trademark and EMUSIC.COM is a trademark of EMusic.com.

Any forward-looking statements contained in this release involve a number of uncertainties, risks and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to materially differ. Factors that could cause actual events or results to differ materially include, among others, those set forth in the Company's S.E.C. reports. EMusic undertakes no obligation to update publicly or revise any forward-looking statements.



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