Already the number-two digital music retailer, after iTunes, online music retailer eMusic said this week that it's surpassed 350,000 subscribers and now has more than three million tracks in its catalogue.

eMusic works off a subscription-based model - users pay to download a fixed number of tracks each month - but the music itself is encoded using MP3, so there's no DRM (Digital Rights Management) restriction.

eMusic serves up independently published and produced music in all genres, from electronic to blues, classical to country, and much more - more than 20,000 labels are represented.

To date, eMusic has sold more than 165 million downloads, and since bringing audiobooks online two months ago, about 25,000 of them have been audiobooks. eMusic notes that its subscriber base has grown by 50,000 since April. eMusic has branched out to offer OTA (Over The Air) offerings to AT&T mobile phone customers, as well.

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