MySpace, Major Labels Join Forces for Online Music Store
It seems that myspace are going to start paying the majors for their music on its site (or a spinoff site) through subscriptions (which wont work – the argument being ‘why should I pay for something I can download for free, even if you are telling me its illegal, its still free’)
what might be a better thing to do is to share some of the 20 million (ish) USD PER MONTH that they make from advertising on the bands pages with the bands themselves.
eg, I have a band, and its quite popular on myspace, I manage, for exapmle to get 1000 people to go to my page in a day, myspace make money from this (they make a SHITLOAD from google adsense alone – on average I can get $0.50 per click on a google banner, a click happens about 7 times for every 100 visitors, so in one day myspace could make $35 a day from my page alone, how about myspace giving me $20 of that, since im the reason that the people are going to my page, hell, if I was greedy id DEMAND $30 form that, but I understand myspace is a whore, anyway here is the articl that I found –
MySpace has partnered with three of the four major record labels in an effort to create “a one-stop source for all music, in all its various digital incarnations,” according to The New York Times.
The new service will let users stream tracks for free, buy DRM-free downloads that can be transfered to portable devices, and maybe even sign up for an unlimited MySpace Music subscription service.
The deal will require MySpace to spin off its music division. MySpace Music will become a separate entity, owned partially by the labels and operated by MySpace. In return for dropping a copyright infringement suit against MySpace, Universal will receive a settlement rumored to be in the $100 million range. The one remaining major-label holdout, EMI, is expected to join the service soon, according to The Times, which quoted sources close to the negotiations.
Don’t expect to be able to kick the tires of MySpace Music until later this year. At this point, the service is most likely little more than big ideas backed by signatures on an agreement. Major decisions remain to be made (in particular, the music subscription plan doesn’t appear to have solidified). However, a basic plan has been established: to sell music and music-related merchandise on a site many fans visit when they want to hear something for free.
As MySpace courts the major labels, it should remember to offer similar opportunities to the 7 million or so indie bands who helped make it the web’s default repository for music. If U2 and Universal get a share of advertising, so should indie bands like Javelin.
Otherwise, MySpace could be opening the door for Facebook, imeem or any number of other sites to become the next music clearinghouse for unsigned bands. As helpful as major-label music licenses are, long-tail bands add up to a ton of traffic, and MySpace can ill afford to see them migrate elsewhere.
If the new venture manages this tricky balancing act between major labels, indie bands and the music fans who really run the show, it will succeed by being all things to all people. The move makes perfect sense to James McQuivey, vice president and principal analyst at Forrester Research.
“A MySpace music store is exactly the right step to get the music industry to the next level because it recognizes that consumers don’t just buy music, they experience it, which is a much larger concept,” McQuivey said. “They share, they discover, they heckle, they even use it to provide self-identity.
“That’s what people do with music already on MySpace, it’s what has made Last.fm and imeem.com so popular so quickly. But none of those experiences take it to the next level, allowing consumer to integrate buying music and related things.”
McQuivey said with support from the labels, MySpace Music will let consumers “touch on every aspect of their music experience in one place, including buying tickets for concerts” and eventually even watching them live on MySpace.