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MySpace unwraps online music store
Thursday, April 03 2008
by Maxim Kelly


MySpace has long been credited with helping to break artists
such as Lily Allen. Now it's hoping to cash in on its
popularity with the launch of an online music store.

The social networking site, which enables bands to upload
tracks to their profile pages where they'll stand a chance of
reaching a worldwide audience, has agreed a deal with three
of the world's largest music labels to introduce an online
channel -- MySpace Music -- which will go head-to-head with
iTunes.



The popular social networking site, which was established in
2003 and purchased by Rupert Murdoch's NewsCorp in July 2005
for USD580 million, said on Thursday that it has agreed terms
with Sony, Universal and Warner Music that allows it to
license music from the firms.



Last week it was reported that the social networking site was
close to sealing a deal with Sony and Warner Music to offer
legal music downloads. However, a long-running copyright
lawsuit with Universal was rumoured to have delayed the joint
venture. It's believed that the lawsuit has now been settled
thereby giving MySpace the go-ahead to formally announce its
new music store.



MySpace Music will offer DRM-free music downloads and
streaming as well as ringtones, gig tickets and merchandise.
Details on pricing and exact launch date have not yet been
released.



"Today represents the beginning of a new chapter in the
story of modern music -- we're proud to announce the marriage
of the world's biggest collection of music content to the
world's most popular music community," said Chris DeWolfe,
CEO and co-founder of MySpace.



"Millions of die-hard music fans and artists already call
MySpace Music home -- by partnering with these industry
leaders our vision for MySpace Music as the definitive
platform for unlimited artistic expression and unrestricted
user experience is finally being realised," he added.



The launch of an online music store isn't unexpected and if
anything is an obvious move for a site that's become popular
due to its success in promoting bands like Arctic Monkeys.
Moreover, the announcement follows the signing of a licensing
agreement with Sony BMG last October, which enabled MySpace
users, of which there are around 110 million, to access music
from artists such as Britney Spears.



What's perhaps of greater interest to internet users is how
the announcement will go down with other firms offering music
online. Apple recently proposed a new deal which would see
the tech giant charging a premium for iPod and iPhone devices
in return for free access to its entire music library -- a
move which the company hopes will encourage users to stick
with iTunes.



Nonetheless, there's speculation that given the fact that
MySpace's primary audience is also the most likely to
purchase music, industry analysts are predicting that iTunes
may have finally met its match.