MySpace Music Coming Soon

For years, MySpace has been the world's largest social network. However, it was always missing something that is part of the background of an active social life. MySpace never had any music that one could download.

As of Wednesday, this has changed. According to Reuters, MySpace has signed with four leading labels and is putting the songs on its Web site to download for free. Basically, the free music is so that artists can win new fans, especially from catalogs of preferences, etc. All this puts MySpace on the same page as iTunes, and MySpace would like to do better than their competitor.

While making MySpace Music a reality, one would think that finding music companies to sign would be easy for the world's number one social network. But, according to Reuters, signing deals was the hardest part of the whole venture. That is especially true with the world's number four music company, EMI Music.

EMI stalled its acceptance until hours before the service was announced. End of the minute deals also came from The Orchard, a large distributor of independent music, and Sony/ATV, a venture between Sony and Michael Jackson. Universal Music Group, Sony BMG Music Entertainment and Warner Music Group signed on in April.

All the companies that have signed have something to take from this, too, as the majors are also taking small equity stakes in the new business. The stakes are based on a ratio related to market share, so Universal has the largest share and EMI the smallest.

Regardless of how this is proportioned, the labels stand to benefit. With sales shrinking, any new way to get songs to the public to earn money is positive. The labels are also hoping to earn from other sources such as Amazon.com downloads, ringtones, concert tickets, and merchandise.

As for MySpace, it earns revenue by trying to match music downloads to interests.

"We see ourselves as a social port where we filter information based on what's of interest to you," MySpace COO Amit Kapur told Reuters.

MySpace says that the music industry is irritated by the powerhouse Apple has become because of iPod and iTunes. The industry has said that it is hurtful to the music companies that iTunes will only sell songs for 99 cents and only sell single songs, and no albums. That means, though, the new deal with MySpace is very industry friendly.

An unnamed executive says that labels will actually try to release albums to MySpace first. "MySpace Music gives fans a reason to buy music on somewhere other than iTunes," he said.

In a way, though, music isn't new for MySpace. Artists, radio stations, etc. have always been able to post songs on their pages. For undiscovered artists, MySpace is very helpful, but hopefully, for those discovered and not, MySpace Music will be an even better success that listeners can enjoy.