the e-mail database. We can e-mail members if we want to."
Of course, it will help MySpace Music that three of the four major record labels (so far) are teaming up with them to pioneer a new ad-supported streaming model. The labels are likely to throw their marketing resources behind MySpace Music as they desperately try to figure out how to make money online and reverse their flagging businesses. It's also important to them that any new online revenue models don't involve Apple, which the labels think has too much control over pricing and distribution. But ultimately, it is the five million musicians, bands, artists and independent labels that "have a MySpace" and are the secret to MySpace Music's potential success.
(Disclosure: I am the president of Fat J Records, an independent record label based in Boston )
Melissa Chang is the founder of Pure Incubation, an Internet incubator based in the Boston area. Her blog is at www.16thletter.com.
More news, commentary, and predictions from The Industry Standard:
- Prediction: Apple's iTunes to displace Wal-Mart as largest music retailer in U.S.
- Prediction: Apple bundles unlimited iTunes with iPods, iPhones
- Prediction: Facebook overtakes MySpace in international traffic
- Fred Wilson: Something important is on the horizon in the music business
- Opinion: 10 'Net services that will succeed (and 10 that will probably fail)
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Comments
Melissa,
This article was mentioned by Jon Longoria at theReformed (source: http://www.thereformed.org/2008/04/24/apple-wins-by-the-numbers/ ) regarding MySpace's challenger music service to Apple's iTunes which was a follow-up to his original article (source: http://www.thereformed.org/2008/04/07/myspace-gambles-big-on-lost-cause/ ). Although both are interesting reads, I would have to admit that Jon Longoria makes a better case on the probable outcome of MySpace vs iTunes.
Jesse
I would definitely not use the service if MySpace started giving out my contact information to artists. That is a breach of privacy. I don't want MySpace or Apple to know my details, but I know that they will not share my information because I have told them not to, plus I expect them to keep my information secure and if I leave then they delete my information entirely off their systems.
This should be the first step to a fully open-to-every-one sell-our-own-music kind of store. When MySpace reaches the easiness of ITMS for shopping (read one-click please) haveing an account at MS going around shopping should be a treat since in the end MS is the only place in the world were indies and mega-stars are placed side by side.
One more thing... the succesful AppStore inegrated in Apples iPhone uses the same basic idéa; let anyone create applications for the phone, sell them through AppStore and keep 2/3 of the revenue.
So the questin is if MS can create a shopping experience similar to the ITMS and AppStore OR will Apple take the step to create a side market for indies in the same manner as the AppStore but integrated in their itunes music store..
/Tomas Backman
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