It's Official: MySpace Music Launches
September 25, 2008 at 5:22 AM (PT)
As first reported on ALL ACCESS YESTERDAY (NET NEWS 9/24), MYSPACE MUSIC makes its debut TODAY. The giant social network is finally unveiling its long-anticipated (and hardly secret) MYSPACE MUSIC site, which will be the music industry's largest attempt to date to generate advertising revenue in exchange for free online music, writes BUSINESSWEEK.COM.
The idea is simple: Offer every shred of music out there, including new releases and most of the catalogs of the four major labels -- UNIVERSAL MUSIC GROUP, SONY BMG MUSIC ENTERTAINMENT, WARNER MUSIC GROUP (WMG) and EMI. It could be a marriage made in heaven. With 120 million global users and 35 million unique users each month, MYSPACE has what the music industry badly needs -- the attention of the young, hip demographic advertisers most crave. What's more, these users love music; about two-thirds have streamed songs to their pages, MYSPACE says.
To get the labels to buy in, MYSPACE gave each an equity stake in the joint venture. The labels also get a cut of revenues from ads that sit on the page or player. MYSPACE won't say how large a slice, but reports indicate it could be 60%.
People who want to play the music elsewhere are sent from MYSPACE to AMAZON, which sells songs that can be played on an iPOD or other digital music device, in contrast to music purchased from APPLE's iTUNES MUSIC STORE, which places limits on where it can be played. AMAZON also sells songs for 89¢, a dime less than on iTUNES. MYSPACE also hooks users to JAMSTER, where they can buy ringtones.
Check it out at www.music.myspace.com.