It's Official: MySpace Music Formed
April 3, 2008 at 9:49 AM (PT)
MYSPACE and three of the world’s largest music companies -- SONY BMG MUSIC ENTERTAINMENT, UNIVERSAL MUSIC GROUP and WARNER MUSIC GROUP -- have formed a landmark joint venture, MYSPACE MUSIC.
The new company marries the most popular music community in the world with the most comprehensive catalog of music content available online, unveiling a host of new music services and monetization models. The financial terms of the partnership were not disclosed.
The product vision for MYSPACE MUSIC is to build on the existing traffic, credibility and popularity of the MYSPACE platform by creating a fully integrated 360-degree global music solution. MYSPACE MUSIC will feature the network’s first integrated e-commerce solution and evolve the user’s ability to discover, share, and socialize by adding commerce and music management tools. The new offering will seamlessly transform the MYSPACE MUSIC experience into a groundbreaking mix of community, commerce, and discovery. The product will roll iteratively in the coming months.
We believe that one of the greatest growth opportunities for our industry is to develop new partnerships and models focused on unlocking the value of music in the online community space.
Plans For Three Primary Areas
MYSPACE MUSIC product will integrate new content and music capabilities across three primary areas: the MYSPACE MUSIC home page, the site’s more than five million artist profile pages and individual user home pages, providing bands and fans multiple touch points to discover, share and purchase music and merchandise in one place for the portable device of their choosing. MYSPACE MUSIC empowers bands and fans with unprecedented digital music service and e-commerce platform within MYSPACE that will include DRM-free digital downloads, ad-supported audio and video streaming, a mobile storefront (powered by NEWS Corporation's JAMBA mobile company), as well as various sponsorship solutions.
For users, MYSPACE MUSIC will enable the site’s global community to discover music and then download, stream and personalize music content. The personalized music management product will allow users to control their entire MYSPACE MUSIC experience directly from their user page by creating playlists and having access to enhanced purchase opportunities and search functionality.
For the labels’ artists, the formation of MYSPACE MUSIC will offer them the opportunity to provide their fans with digital downloads as well as mobile ringtones, SMS, and artist wallpapers, all directly from their artist profiles. Additionally, artists will be able to evolve their MYSPACE experience beyond the promotional by now monetizing their full repository of content with a 360-degree solution, including not only the sale of digital content, but also physical goods such as T-shirts and concert tickets.
The new company will be based in LOS ANGELES and will have a dedicated executive management team to oversee the business. In the coming months, MYSPACE MUSIC will begin to roll new content and product functionality within the existing music channel. The process will be iterative to take full advantage of the popularity and existing traffic to the music channel already booming within MYSPACE.
The Heads Speak
"We’re committed to pioneering innovative and satisfying ways for consumers to experience music and video and MYSPACE MUSIC will deliver on that promise," stated NEWS CORP. Pres./COO PETER CHERNIN. "The music industry is alive and kicking; we’re thrilled to play a leading role in its future.”
"Today represents the beginning of a new chapter in the story of modern music," MYSPACE Founder/CEO CHRIS DEWOLFE said. "We’re proud to announce the marriage of the world’s biggest collection of music content to the world’s most popular music community. Millions of diehard music fans and artists already call MYSPACE MUSIC home, by partnering with these industry leaders, our vision for MYSPACE MUSIC as the definitive platform for unlimited artistic expression and unrestricted user experience is finally being realized.”
"We’re delighted to be working with MYSPACE to create a new global entertainment destination that combines one of the world’s most compelling online communities with some of the greatest artists and music in the world," noted SMBGE CEO ROLF SCHMIDT-HOLTZ. "We see this innovative new joint venture as a great way to provide music fans around the world with a wide ranging online entertainment experience, while at the same time establishing an expansive commerce and marketing platform that will benefit our company and our artists. We look forward to making MYSPACE MUSIC a key part of our ongoing efforts to bring our artists, and their music, to fans across every conceivable platform."
"MYSPACE MUSIC stands as a dynamic vehicle to explore even more creative ways to harness the power of social networking with our leading music and video content," stated UMG Chair./CEO DOUG MORRIS. "Our partnership with MYSPACE fits perfectly within our overall digital strategy of driving innovation, while creating new and exciting opportunities to enhance the relationship between our artists and their fans."
"WARNER MUSIC GROUP is very pleased to be entering into this groundbreaking joint venture," WMG Chair./CEO EDGAR BRONFMAN, JR. said. "We believe that one of the greatest growth opportunities for our industry is to develop new partnerships and models focused on unlocking the value of music in the online community space. This venture may provide a defining blueprint for this next important stage in the evolution of social media, benefiting consumers, artists and music companies alike."