Report: MySpace Music to launch in days - Orbitcast

Report: MySpace Music to launch in days

| 4 Comments

MySpace MusicThe rumors that MySpace is teaming up with the big labels are looking to be true. Reuters is reporting that MySpace will unveil a joint music venture with at least three major music companies within 5 days.

News Corp (which owns MySpace), Sony BMG, Universal Music Group, and Warner Music Group will each have a stake in the venture, say Reuters sources.

TechCrunch has confirmed through their own sources that MySpace has settled their lawsuit with Universal. Meanwhile, Silicon Alley Insider has more details in that Universal will receive "a 'huge' cash payment in return for settling the 2006 lawsuit, perhaps in the $100 million range."

"It's really creating a robust monetization component to MySpace and having a focused music effort that could be the MTV of a new generation," said a music industry executive to Reuters who asked not to be identified before the deal is formally announced.

MySpace to become the "new MTV"? As long as MySpace doesn't lose its way (like MTV did), this could pose to be a very significant development in the world of music discovery for future generations. It's up to the execs over at Sirius and XM (and the entire radio industry in general) to make sure they're part of that movement.

[Reuters, TechCrunch, SAI]

UPDATE: PaidContent has more details on the actual service:
  • Downloads will be DRM-free
  • Video/audio streaming will be ad-supported
  • Store will include merchandise and ticketing
  • With 30 million uniques monthly and 5 million bands on the site "we're not starting from scratch, it's a big heads start."
  • Not just for major music companies, but will be ways for unsigned artists to sign on.
  • There will be a mobile content solution as well. (important)
  • Pricing? Competitive with iPod? MySpace knows they're playing to an iPod-dominated base. DeWolfe: "Our intent is to make this content very portable and to give our users access to the content in the format that they want. To whatever extent we can leverage our environment via iPods, we'll look to do that."
This is very significant in terms of music industry. Remember, this is a joint venture with the three largest record labels (and possibly soon to include EMI, that's up to EMI to decide apparently). Whatever opportunities the RIAA feels they missed out on with online music - be it the original Napster, or now Apple iTunes - they're going to want to make up ground a lot of lost ground. This will be their avenue.

4 Comments

This will be huge. With the addition of merchandise, and tickets, plus of course the whole social scene, MySpace Music will be a force.

No big surprise EMI is not in on it yet, they will be, but, they always seem to move slower (if thats possible) than the other bigs. There is a great writeup that i sent to Ryan about 3 months ago, about how the music industry was not prepared to go digital and embrace digital downloads, etc. I will have to dig that up, but, rest assured, they will not make that mistake again.

going to be the same thing you can get on Itunes...just what we need another place to get the same product.

DRM free....who cares...esp the ipod crowd...they wont care...

FAIL

Not everybody uses Ipod. DRM free is very important to the ones ( like myself ) who opt for the alternative. If it is going to provide more content like Amazon download does, it will compete but if it is destined to fail why hasn't that happened to Amazon already. These services also have provisions for Ipod downloading and if anything it may end up making Apple and Microsoft available to more than just their equipment holders.

how is this "FAIL"?

It's not the same-place.... its myspace. everyone's already on it, using it to listen to music and follow their favorite artists.

itunes doesn't let artists have their own pages and connect directly with their fans. myspace does. you can say "FAIL" all you want, but this will be huge.