Major Record Labels Form Joint Venture With MySpace

from the to-do-what-exactly? dept

There's been some buzz about this all week, but now it's official that MySpace has teamed up with three of the four major record labels (the smallest, EMI, is still holding out, though it may join eventually) to create a joint venture offering called MySpace Music. The company is separate, but connected to MySpace. Unfortunately, the details are incredibly vague. So far, it seems to say that the new company will "let people listen to tunes and watch videos for free on the Web, as well as buy merchandise, concert tickets, and music through downloads." That's a pretty broad description, and while it sounds good upfront, execution is everything. And, historically, the major labels haven't executed particularly well when it comes to creating online music offerings. Already, it seems like they're hedging by saying that they're not committed to offering DRM-free music from this service. In fact, it often seems like these efforts are designed to fail. So, let's take this as a tentative step in the right direction, though with the expectation that the labels will likely do something to screw this up along the way. At the very least, it's the labels recognizing they need to change -- even if they still haven't come to terms with how to actually change.

Filed Under: business models, music, record labels, social networks
Companies: myspace, sony bmg, universal music, warner music


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  1. identicon
    Kris Jackson, 19 May 2008 @ 10:42am

    Major record label & Myspace Deal

    Major labels are in a 'no win' situation because pandora's box has been open years with illegal music downloads and file sharing. The best thing for the majors to do is allow people to browse all music files for listening purposes while on myspace in hopes that the potential consumer might purchase music threw it. In these times that individual countries have over 1-billion illegal downloads happening per year there is no stopping it. People are getting more accustom towards FREE music so when we enter a time that a single song is only selling for $0.99 cent and ring tones are still able to generate more money selling for $2.99. People must understand that there is something serious wrong with the whole music industry in these times. Unless a Major Record label can generate money from the artist threw live show venues from a percentage basis. Major record labels will soon be extinct like the dinosaur.

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