Around the Net
MySpace May Be 'New MTV'
- Los Angeles Times/paidContent.org, Thursday, April 3, 2008 11 AM
MySpace could be on its way to becoming the "new MTV", now that the social networking giant is announcing a new music deal with several recording industry majors. The new service will carry an
old name, MySpace Music, but offer free ad-supported music and music video streams, as well as a marketplace for MySpace users to buy music downloads, ringtones, concert tickets and
merchandise.
According to paidContent.org (link: http://www.paidcontent.org/entry/419-myspace-music-deal-with-three-labels-en-route-possibly-by-friday/), MySpace Music will be a joint venture between News Corp., Vivendi's Universal Music Group, Sony/BMG and Warner Music. EMI Group, the last music major, is still in discussions about being included. The new company will have its own management team, whose CEO will report directly to MySpace CEO Chris De Wolfe. The labels will make money as equity holders and as content licensees. The content deals, which include content available from third-parties, will be long-term. A settlement between Universal Music and MySpace over the pending trademark suit will also be part of the deal.
"It will likely give iTunes a run for its money," a music industry exec told the Times. "This venture is not just a store, it is a thriving, growing community of people."
