Is 'MySpace Music' On The Horizon?
February 20, 2008 at 5:39 AM (PT)
MYSPACE MUSIC is the name NEWS CORP. executives are tentatively using for a proposed music service that they are pitching to record executives, two sources told CNET NEWS.COM. The news that NEWS CORP., MYSPACE's parent company, has approached the four top music labels (NEW NEWS 2/18) was first reported over the weekend by the blog PAIDCONTENT. Here are a few new details on what NEWS CORP. is running past the music companies.
NEWS CORP. has tested the record industry's interest in a site that would offer music in several different ways, including ad-supported downloads and streaming to PCs, according to a source with knowledge of the talks. This may be why PAIDCONTENT reported that NEWS CORP. was proposing an ad-supported download service while the blog SILICON ALLEY INSIDER said the company was backing a streaming service.
NEWS CORP. has also broached the idea of a streaming service that featured a prominent "Buy Now" button that allowed users to purchase songs off the site, another source said.
It's important to note that these are only talks. NEWS CORP. appears, at this point, only to be taking the record industry's temperature, the sources said. Representatives from the labels declined to comment. A MYSPACE spokeswoman could not be reach.
One of the hurdles that NEWS CORP. must overcome before striking a deal that includes all of the big record companies is to make peace with UNIVERSAL MUSIC GROUP, which filed copyright infringement suit against MYSPACE in NOVEMBER, 2006.
The labels already have streaming deals with social networks, IMEEM and LAST.FM.