MySpace Music Mulling Music Subscription Service
Ad-Supported Model Not Paying Off
July 7, 2010 at 4:48 PM (PT)
Executives of MYSPACE MUSIC are talking with the major labels about launching a subscription service, presumably by the end of the year. CNET NEWS reports that NEWS CORP, the parent company of MYSPACE, have soured on the current free ad-supported model because " it's burning through a lot of money each month."
On top of the underwhelming revenue generated by the ad-supported model, NEWS CORP. Chairman RUPERT MURDOCH has publicly called for paid online content, which is now in place at video portal HULU and THE WALL STREET JOURNAL website.
MYSPACE MUSIC honcho COURTNEY HOLT told CNET, "We're always exploring new monetization opportunities, but have no plans to change our current service which includes streaming free music."