The MySpace juggernaut continues?
Posted by 2tak on September 1, 2006
In an interesting move that reminds me of the days of mp3.com, Mashable.com reports that myspace will begin offering DRM-free music downloads from the 3 million bands on myspace. What I would like to know is -
1. What are the opt-in, opt-out options for the musicians? Are they going to force every artist to allow myspace to sell their music in exchange for a myspace music profile? Will myspace try to obtain certain rights to these tracks beyond myspace, such as first rights to the music, etc.? And what is the relationship between myspace and the music publishing companies?
2. Who sets the prices? According to the article, “Snocap charges the artists a small distribution fee, and most of the tracks are DRM-free.” Does this mean each band will get to set their own price, or will they go for a single price model like iTunes.
3 Who does the impact more, Apple or the existing record labels? Considering most of the 3 million bands are amateur acts, does this makes myspace an alternative development method for most bands, making major labels unecessary for many?
This will certainly be an interesting development to watch, especially Apple’s reaction if myspace is indeed successful.
Breaking: MySpace to Sell Music From 3 Million Bandstechnorati tags:myspace, music, apple, itunes
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MySpace Layouts said
This will be a great revenue stream for MySpace. The question is, how adaptable will users by to buying music they have already been getting for free? Hmm…
Maestro said
In response to you comments:
1 & 2) It will be interesting to see how they work out what music on MySpace gets sold and how. I’m thinking that they’ll probably go with one of three models. (For both models, I’m assuming that the serivce will be an opt-in feature of MySpace’s music profiles, and that the profile “owner” will be treated as a label (assumed to be the administrating copyright holder for the master recordings) for licensing and royalty disribution purposes.)
Variable Pricing/Fixed Cost per Track – If the artist opts-in, they will be able to add their tracks to the MySpace store and set the price that they want each track to retail at. Myspace will in turn charge a set fee per track sold to the profile owner (rumored to be around $.45/track).
Fixed Pricing/Fixed Cost per Track – This model resembles that of other online retailers. MySpace will have a global licensing model that will pay the copyright holders of the music a fixed fee per track for licensed tracks downloaded through Myspace’s Snocap-powered store. In this scenario, MySpace will probably also fix the retail price of the tracks.
Variable Pricing/Subscripition-Based Cost – This model has not been done before. Here, MySpace would allow music profile owners to set whatever price they want per track (or even bundle tracks into albums or custom mixes for 1 price). However, the distribution fee/retail commission would be paid bythe owner in the form of a fixed fee per month under a subscription agreement. The owner pays a predetermined amount (say $20/month) and gets a digital store capable of retailing up to a certain number of unique tracks (say 15) that they can price however they want (even free). In this model, there could still be a small per track transaction fee to offset credit card costs.
Publishing companies would not come into the discussion because the profile owner/labels would be soley responsible for distributing earned mechanical royalties to the eligible copyright holders.
#3) As for how Apple and record label would view all this, I think that Apple could be nervous, but not for so obvious reasons. The RIAA and there respresented labels (with the exeption of UMG) have been putting a lot of pressure of Apple to move to a variable pricing model. Elliot Spitzer’s probe (even though looking for criminal collusion between the labels) may help their cause. Similiarly, if MySpace lauched a variable pricing modeled store successfully, it could put the greatest pressue yet on Apple to open up its pricing system. Labels may also decide to release title on MySpace exclusively if it is the only player in town with a variable pricing system.
With all of that said, the one thing I wonder about is whether MySpace will allow music profile owners who are currently selling their music through MySpace via Snowcap’s Linx interface to continue unhindered.
Ramon said
Anyone else having bother with myspace or is it just my pc?
Last couple of days it seems it wont let me download any song from anywhere.
Anyone having same bother – or anyone how to sort it?