Much of the appeal of music lies in its power to convey emotions/moods and to evoke them in listeners. In consequence, the past decade witnessed a growing interest in modeling emotions from musical signals in the music information retrieval (MIR) community. In this article, we present a novel generative approach to music emotion modeling, with a specific focus on the valence-arousal (VA) dimension model of emotion. The presented generative model, called acoustic emotion Gaussians (AEG), better accounts for the subjectivity of emotion perception by the use of probability distributions. Specifically, it learns from the emotion annotations of multiple subjects a Gaussian mixture model in the VA space with prior constraints on the corresponding acoustic features of the training music pieces. Such a computational framework is technically sound, capable of learning in an online fashion, and thus applicable to a variety of applications, including user-independent (general) and user-dependent (personalized) emotion recognition and emotion-based music retrieval. We report evaluations of the aforementioned applications of AEG on a largerscale emotion-annotated corpora, AMG1608, to demonstrate the effectiveness of AEG and to showcase how evaluations are conducted for research on emotion-based MIR. Directions of future work are also discussed.