News Corporation (NYSE:NWS) subsidiary, MySpace.com is launching MySpace Music this week. MySpace Music will allow users to buy songs from 3 out of 4 of the top recording companies. In gearing up for the launch, MySpace has signed on platinum sponsors: McDonald’s Corporation (NYSE:MCD), Toyota Motor Corporation (NYSE:TM), and State Farm.
“We haven’t made just a commercial deal with the labels, but a joint venture, so they are invested in our success,”stated Jeff Burman, President of Sales and Marketing.
MySpace Music will have it’s social network built around it. MySpace gained in popularity by originally targeting musicians to join the network. From there it branched out to a broad range of entertainers and their fans. MySpace gave instant celebrity cred to several artists like Lily Allen and Gnarls Barkley.
One of the best new features of MySpace Music will be the availability of free music. The free music includes tracks from artists: T.I., Kid Rock, U2, Christina Aguilera, and several others. MySpace users will be able to create playlists on their profiles by visiting these artists’ profiles and adding the tracks available on them.
“Think about why people go to a music service,” stated MySpace CEO Chris DeWolfe. “They go to
iTunes because they just want to get the songs and get out. MySpace is
different. It’s like going to your friend’s house, and they have cool
music playing in the background that makes the experience that much
Amazon.com, Inc. (NASDAQ:AMZN) is looking forward to the launch too. They have an alliance with MySpace. MySpace Music driving sales for Amazon will loosen Apple’s dominant market-share on digital music.
Yahoo! Music has thousands of songs and videos available on their site. All of them are powered by advertisements. MySpace is taking the same approach for their Music service. MySpace has 300 salespeople driving advertisement providers to list their inventory on the social network. The cost to advertisers will be about $10 per 1,000 plays.
The launch of MySpace Music this week will be huge. I’ll cover it as additional details emerge.