After much resistance of the digital age of music purchasing, it seems three of the major labels (Universal Music, Sony BMG Music Entertainment and Warner Music Group) have struck a deal with the hugely popular online site MySpace. The deal would mean that the major labels will allow their entire catalogue to be downloaded on the site.
This would essentially become a one-stop shopping for music. People would be able to listen to and download music, which would be paid for by online advertising. There is also consideration for a subscription plan — where people would pay a monthly fee for unlimited access. In addition to the music, tickets to concerts, merchandising, and ring tones would also be available for purchasing.
MySpace Music will run in a similar way to a major label with a board of directors representing each of the major labels involved. Part of the impetus to do this — in addition to MySpace being a huge medium for fans to discover music and for artists to promote themselves at a much cheaper cost (MySpace is free to use) — results from competition with the current leader in downloading; iTunes.
This doesn't surprise me at all. I've had a suspicion over the last couple of years that record companies as we know them are going to be a thing of the past in favor of an online company.
As online promotion has increased monumentally, and artists are gravitating towards the DIY method of releasing their music, I'll be curious to see going forward whether bands will continue to have an association with a major. I know there is still a school of thought which believes a major label is what you need to become successful (I have an artist I'm consulting who falls into that category).
Article comments
1 - Douglas Mays
'Still, I have reservations'... yes, true. I think it is just a step in the industry trying to restructure things since this world of downloading has presented a new source of income.
then, 3 major labels hook up with MySpace. hhhmmm...MySpace is the new 'major'???
DM