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. icon
    PaulT (profile), 4 Apr 2008 @ 12:28am

    Re: If they want this to work...

    Yep, it's going to be interesting to see if they can work out something people will actually want to use this time. Let's see:

    "let people listen to tunes and watch videos for free on the Web, as well as buy merchandise, concert tickets, and music through downloads."

    So, it'll be a combination of YouTube, last.fm, aloud.com and Amazon. If they can combine the DRM-free nature and the ease of all 4 of those sites and a decent recommendation engine, it'll be great. Otherwise, it'll fail. Miserably.

    The big problem for the RIAA now is that while their core business model has been failing, all the good ideas have been tried by 3rd parties, so they can't do anything new. They just have to realise that their packaging matters, and people have come to recognise that the turds they've been trying to gift wrap for us are just turds.

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