Year in Review: MySpace Music

MySpace Music launched in 2008 offering users the ability to stream any song from the MySpace catalogue on their MySpace page. There was much contention at the time of the launch that insufficient steps had been taken to include independent and unsigned artists.

While the four major labels were offered equity stakes in addition to shares of advertising revenue and download purchases, independent labels were not offered the same terms.[1] At the time of its launch the only independent label signed to provide music to the service was The Orchard with IODA signing on shortly after.[2] Merlin and A2IM are yet to complete negotiations with the service with reports suggesting that the failure to provide an equity stake is a serious concern.[3]

Many commentators have noted that MySpace has been, in the past, the primary forum in which independent artists were able to gain exposure and build a fan base.[4] The lack of parity in the terms being offered to independent artists is seen to undermine the basis on which the service gained its popularity.[5] While negotiations are continuing there is some speculation that this may lead to an anti-trust investigation.[6]

The situation is even more tenuous for artists that are not signed to any label at all – while they are still able to upload their music to their MySpace page, there is no way for them to enable others to stream songs from their MySpace page nor is there any way for them to recover royalties for downloads.[7]

MySpace Music was reported to have a catalogue of 5 million songs at the time of its launch and hosted 1 billion streams in the first week. It is only available in the United States at the moment.[8]

Positive aspects of the service include the ability for users to select songs from a list by browsing by ‘Top 100’ – this is split into three categories, differentiating between major label artists, independents and unsigned artists[9]. Other positive attributes include links to Amazon which sells DRM free tracks and the ability to create and share playlists.

Questions remain as to whether the service can compete with free and convert file sharers to paid customers.[10]

[1] Future of Music Coalition, MySpace Music: Penthouse or Third-Floor Walkup (21 October 2008) <http://futureofmusiccoalition.blogspot.com/2008/10/myspace-music-user-review.html> at 27 October 2008; Digital Music News, MySpace Music Goes Live; All Majors On Board (25 September 2008) <http://www.digitalmusicnews.com/stories/092408myspace> at 26 September 2008
[2] ArsTechnica, MySpace Music signs IODA, "virtual fifth" Merlin still MIA (23 October 2008) <http://arstechnica.com/news.ars/post/20081023-myspace-music-signs-ioda-virtual-fifth-merlin-still-mia.html> at 25 October 2008; Digital Music News, MySpace Music Inks IODA; Million-Plus Independent Songs (23 October 2008) <http://www.digitalmusicnews.com/stories/102308ioda> at 24 October 2008
[3] Future of Music Coalition, MySpace Music: Penthouse or Third-Floor Walkup (21 October 2008) <http://futureofmusiccoalition.blogspot.com/2008/10/myspace-music-user-review.html> at 27 October 2008; ArsTechnica, MySpace Music signs IODA, "virtual fifth" Merlin still MIA (23 October 2008) <http://arstechnica.com/news.ars/post/20081023-myspace-music-signs-ioda-virtual-fifth-merlin-still-mia.html> at 25 October 2008; Digital Music News, Drama Hits MySpace Music: Why Are Indies So Mad? (26 September 2008) <http://www.digitalmusicnews.com/stories/092508myspaceindi> at 5 October 2008; ArsTechnica, MySpace Music extends right hand of fellowship to Big Four, middle finger to indies (25 September 2008) <http://arstechnica.com/news.ars/post/20080925-myspace-music-extends-right-hand-of-fellowship-to-big-four-middle-finger-to-indies.html> at 26 September 2008; Digital Music News, MySpace Music Goes Live; All Majors On Board (25 September 2008) <http://www.digitalmusicnews.com/stories/092408myspace> at 26 September 2008
[4] TechDirt, Independent Record Labels Missing From MySpace Music (25 September 2008) <http://www.techdirt.com/articles/20080925/1530262378.shtml> at 26 September 2008
[5] TechDirt, Independent Record Labels Missing From MySpace Music (25 September 2008) <http://www.techdirt.com/articles/20080925/1530262378.shtml> at 26 September 2008
[6] The Register, Poptastic MySpace Launches, without indies (26 September 2008) <http://www.theregister.co.uk/2008/09/26/myspace_music_launch/> at 5 October 2008; The Register, MySpace Music hears the antitrust song (18 September 2008) <http://www.theregister.co.uk/2008/09/18/myspace_music_antitrust/> at 21 September 2008
[7] Future of Music Coalition, MySpace Music: Penthouse or Third-Floor Walkup (21 October 2008) <http://futureofmusiccoalition.blogspot.com/2008/10/myspace-music-user-review.html> at 27 October 2008
[8]ArsTechnica, MySpace Music extends right hand of fellowship to Big Four, middle finger to indies (25 September 2008) <http://arstechnica.com/news.ars/post/20080925-myspace-music-extends-right-hand-of-fellowship-to-big-four-middle-finger-to-indies.html> at 26 September 2008; Digital Music News, MySpace Music: One Week, One Billion Streams (2 October 2008) <http://www.digitalmusicnews.com/stories/100108myspace> at 5 October 2008 ; ArsTechnica, MySpace Music signs IODA, "virtual fifth" Merlin still MIA (23 October 2008) <http://arstechnica.com/news.ars/post/20081023-myspace-music-signs-ioda-virtual-fifth-merlin-still-mia.html> at 25 October 2008
[9] Future of Music Coalition, MySpace Music: Penthouse or Third-Floor Walkup (21 October 2008) <http://futureofmusiccoalition.blogspot.com/2008/10/myspace-music-user-review.html> at 27 October 2008
[10] TechDirt, MySpace's Music Offering: Ignoring The Elephant In The Room (12 September 2008) <http://www.techdirt.com/articles/20080912/1514312256.shtml> at 21 September 2008