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Nov
23
2008

"This is no 'fire sale', this is a post-scarcity business model that we have been adopting, and let me say that it's been working really well for us. I'm continuing to see a lot of people join as Magnatune members, and can proudly say that each day, we make twice as much money from our memberships than from our download sales. Memberships have quite literally turned our business around, so that we're growing strongly again.
We're simply continuing to face the 'Internet Reality': a world where everyone has more music than they know what to do with (from Bittorrent to Last.fm and beyond). The way to compete in this new world is not try to create artificial scarcity, but offer something better than what is available for free, in all ways that we can think of."

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