Here is further proof that MySpace users will never be charged for the service I spoke about here. One feature of MySpace is that they hosts band profile pages. Now, News Corp can can pick from the best bands that they already have a relationship with to start a record label. They are launching MySpace Records with the help of Interscope. Here is what News Corp has really purchased:
*A pool of music that they can pluck the best songs and artist from
*a built in fan base for each band
*a means to push advertising about music that can be purchased to millions of people
Now that MySpace is under different management, they are simply leveraging their assets (artists and fans) into new profit centers. Why would they charge users and thus loose the most valuable asset: the millions of users? It is simply not going to happen. It will be exciting to see what other ways News Corp will come up with to make more money with MySpace. But trust me, they will never do anything that will make them lose users.
One flaw I see with the new label idea is that the first compilation from MySpace Record sis going to be sold through retails stores. Don’t you think most MySpace users prefer to download their music by purchasing them on iTunes or by downloading music illegally? It seems they should put a lot more money into promoting the artist first to create a buzz that is as big as what the majors are able to create, then try to market such a compilation. How about creating a buzz by allowing free downloads from MySpace, and then promoting the hell out of the bands and their tour, and then News Corp can take a cut of the touring profits? Not the best deal for the artist, but it is aligned with the “music like water” theory being presented by The Future of Music.
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