Business | Technology
MySpace Music in danger of hitting bad note
My-Space co-founder Chris DeWolfe came to a worrisome conclusion last year. The online community, which began as a place where musicians connected with fans, had stopped innovating.
- By Dawn C Chmielewski and Michelle Quinn, Los Angeles Times-Washington Post News Service
- Published: 23:32 September 26, 2008
Sant Monica, California: My-Space co-founder Chris DeWolfe came to a worrisome conclusion last year. The online community, which began as a place where musicians connected with fans, had stopped innovating.
Proof of how its musical star had faded became clear during a conversation with Interscope records Chairman Jimmy Iovine, the producer behind Stevie Nicks and Bruce Springsteen, with whom DeWolfe had previously struck a deal to distribute CD's on a MySpace Records label.
Iovine didn't mince his words. When it came to music, "you guys are basically in our rear-view mirror, we're going in different directions," said DeWolfe.
At Iovine's urging, DeWolfe boarded a plane the following morning to meet with Universal Music Group Chief Executive Doug Morris. The purpose: to sketch out a potential collaboration that would set the stage for Thursday's re-launch of MySpace Music.
Although MySpace was an early pioneer in giving unsigned musicians a voice, the social network was never able to leverage that momentum into a revenue-generating business. That left the door open for Apple Inc. to emerge as the dominant force in digital music, eclipsing even familiar record stores.
Details of the new My-Space Music service are now as familiar as the lyrics to any pop tune. MySpace's 120 million worldwide users will be able to create and share playlists, as well as listen to songs or albums in its digital catalog for free. If users want to put the tracks on a portable music player, they need to buy it through Amazon.com.
However, this revamped MySpace Music falls short of the comprehensive one-stop online music store DeWolfe described last spring when he first announced the service. At that time, he promised music aficionados could not only listen to and purchase songs, but they could also buy concert tickets or a band's T-shirt.
Instead, MySpace went for the basics. Users will be able to search for music by artist, song title, or album, then place it on a playlist that can hold up to 100 tracks. The songs can be added to a playlist on a MySpace profile page, where others can hear it.
To be sure, the playlist is hardly an innovation. Other online services, such as the start-up iMeem and Last.fm, which is owned by CBS, offer free streaming and ways for friends to share their virtual-mix tapes. These smaller rivals claim they're not worried about the competitive threat from Myspace, noting that they have a head start.
"Retrofitting an older legacy online service is like trying to turn the cargo ship toward the more nimble speedboat," said Steve Jang, chief marketing officer at iMeem.
But what the News Corp.-owned MySpace Music may lack in originality, it makes up in reach.
"There are 120 million unique users every month on MySpace," DeWolfe said. "It's the largest music community in the world."
The preponderance of revenue for MySpace Music, at least early on, will come from advertising. Music industry executives hope that a global audience will lure advertisers eager to reach a youthful, music-loving demographic."
All four major music labels - Sony BMG, Universal Music, Warner Music, and EMI - together own a 40 per cent stake in the MySpace Music, so they stand to gain financially if the venture attracts enough advertising.
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