MUSIC NEW - EMusic, NYC based on line music provider with 400,000+ subscribers paying a monthly fee to download is announcing today a deal that will add all Sony Music tunes over two years old to its roster, including material from key Sony artists like Michael Jackson, Bruce Springsteen and Billy Joel .

From some time now, major labels have been skeptical of the economics behind eMusic’s offer to consumers. Subscribers to the eMusic “basic” plan, pay $11.99 a month to download 30 songs, or about 40 cents a song, far below the prices on Apple ’s iTunes. Songs are in the MP3 format and do not have restrictions against copying. As part of the new Sony deal, eMusic says it will slightly raise prices and reduce the number of downloads for some of its monthly plans. Danny Stein, eMusic’s chief executive, said the company had been in discussion with the major labels about adding their music for some time now. It would seem that with the continued decline in music revenue, the labels are more willing to work with alternative revenue streams! E-Music continues to talk with Warner Music, the Universal Music Group and EMI, said Mr Stein.

See more at NY Times.