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Download Arbitrage with eMusic

Posted By Barry Ritholtz On May 30, 2006 @ 10:30 am In Markets,Music,Trading | Comments Disabled

Here’s a new market, via  digital audio insider [1], I’ll bet those underperforming Arb Hedge Funds have yet to discover: Arbing MP3s from eMusic [2] to ITMS [3] buyers:

 "In theory, a 40-downloads-a-month eMusic subscriber is paying just under 25 cents a track, so selling one of those downloads to a non-subscriber for 75 cents yields a healthy return. For the buyer, it’s cheaper than a single download from iTunes, plus the eMusic download is an mp3 that can be played on virtually any portable player, with no DRM to hamper the file. And you can get your eMusic cost-per-track down to around 22 cents by opting for a 90-a-month plan [4] or pre-paying for a year with eMusic."

Voila! Free money for the arbs!


Download Arbitrage with eMusic [1]
digital audio insider
Monday, May 15, 2006

Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2006/05/download-arbitrage-with-emusic/

URLs in this post:

[1] digital audio insider: http://digitalaudioinsider.blogspot.com/2006/05/download-arbitrage-with-emusic.html

[2] eMusic: http://www.emusic.com/

[3] ITMS: http://www.apple.com/itunes/music/

[4] 90-a-month plan: http://www.emusic.com/messages/plans.html

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