MySpace merges with major music labels

    At the time iTunes became a leader in music sales, the world's largest social network MySpace is creating a joint venture with the three largest record companies to counter Apple’s dominant offspring (iTunes is selling over 70% all digitized music).

    Universal Music Group , Sony BMG Music Entertainment, and Warner Music Group have non-controlling stakes in MySpace Music. The detailed financial terms of the grand deal between MySpace and music labels were not disclosed.

    The future music giant will provide users with free access to music and video clips sponsored by advertisers, as well as paid MP3 music, ringtones for mobile phones and concert tickets. The service is expected to be launched in three to four months.

    Music distributed through the new Internet service will not be protected from copying, and this will allow customers to listen to the purchased music on any players, not excluding the Apple iPod. Forrester Research

    AnalystJames McQuivey appreciated MySpace Music, however, he noted that the company’s activities will have little effect on Apple’s position for several years, because iTunes lives on through numerous owners of the company's devices that purchase music through the iTunes store.

    via Reuters

    Also popular now: