Launch of New MySpace Music Service Boosts Traffic and Record Label Pockets
MySpace Music is a service that will be jointly operated by News Corp.'s MySpace and three out of the four top record labels. Since its launch, My Space traffic has seen a jump of more than 10%, with further growth predicted through a planned viral campaign.
CEO of MySpace Chris DeWolfe explained that the new service will roll out gradually and offer free streaming music, unprotected MP3 downloads and ringtones, as well as e-commerce offerings such as merchandise and ticket sales. Their goal is to make MySpace a one-stop shop for everything music.
Among the top four music companies, EMI was the lone holdout to the joint venture, although it is said that the two companies are continuing to seek an agreement. The record label partnership with MySpace is a further sign that the music industry is embracing the Web instead of waging war against it. With MySpace Music, the labels will now get an equity stake in the partnership and a share of all the revenues the service collects.