it's finally here.
myspacemusic is about to launch its new music service, backed by all the majors except emi (which rumor has it will join once the service is launched.)
it's a free streaming website (built on an ad supported model) that will also provide an opportunity for a paid download via amazon.
here are a few excerpts:
"Greg Scholl, chief executive of the Orchard, the largest distributor of digital music from independent labels, says a music business based on advertising 'could well dwarf today’s $30 billion global recorded music industry.'
Mr. Scholl’s endorsement is something of a coup for the service. He questioned the effort in a public e-mail message to independent labels when it was first announced. But the Orchard is now set to make its catalog of more than a million songs available to the site."
"'To the average consumer, music is already free,” said Rich Greenfield, an analyst at Pali Research. MySpace Music, he said, “is the labels now acquiescing to that fact.'
They are also trying to profit from it. People familiar with the arrangement between the News Corporation and the studios say that the labels own about a 40 percent stake in the new venture, with Universal Music, the largest label, owning the biggest share. That would give the music companies a direct interest in MySpace Music’s success. People briefed on the deals say they have given MySpace favorable terms — and waived the penny-a-play fee that is charged to other streaming music sites. MySpace would not comment on terms of the deals with the record labels."
not to beat a dead horse when it comes to the ad supported model, but it seems clear that this is the emerging new business model that seems to be gaining more acceptance by the market and the teetering music industry.
it will force more independent artists to reframe themselves as entrepreneurs, but it also gives them more of an opportunity to create revenue streams and marketing opportunities that could help them become self-supporting enterprises.
is this music business 2.0?