creative deconstruction

MySpace Music Not the Silver Bullet Labels Hoped For

Posted on 11. May, 2009 by refe in NEWS

Hypebot reported late last week that although the Major Labels partners who co-own MySpace Music are happy about the amount of traffic the service is generating, they are concerned that they are not seeing the revenue to go along with it. Their disappointment was voiced during a recent closed door meeting and confirmed afterward by a variety of sources.

I am not the least bit surprised by this news. MySpace has seemed to be teetering on the brink of disaster for years now with the advent of the (superior) Facebook and Twitter services. Their precarious position has been made even clearer by the recent ouster of CEO and co-founder Chris DeWolfe and MySpace president Tom Anderson. Music has been the only thing keeping it alive and that has been in spite of the site’s clunky design and lack of features. The Major’s got behind MySpace Music most likely because MySpace was something that they finally “got,” and needed to enter the digital space somewhere. Now it isn’t turning out to be the cash cow that they had hoped for. Just another example of the Majors choosing the perceived safe route instead of doing something innovative and valuable.

When MySpace Music was originally unveiled, DeWolfe and team promised a whole host of potential revenue streams. In addition to advertising, users would be able to purchase tracks – “possibly” through a subscription service – as well as concert tickets and merchandise. When it actually launched the only functionality that remained was the ability for users to create and share playlists, and the only revenue stream was advertising. Users can’t even download music straight from the site – they have to go through Amazon.com. Does the world really need another playlist service?

Another issue is that when MySpace decided to give equity shares to the four major record labels, they effectively closed the door on the indies. The indies were the ones who recognized MySpace’s potential and made it what it was. Now that major acts get top billing they have been rendered second class citizens. Yet another missed opportunity. Social media is valuable primarily becauseit strips some of the power from people like Universal and Sony BMG and disperses it among the little guys. For MySpace to give that power right back is a step toward the past, and I think a lot of people recognize that.

MySpace is still useful for a few things. Yet, unless the new team over at MySpace can think of something to add real value to MySpace Music, I think it will only serve to further people’s perception of MySpace as a has-been platform that is quickly being replaced by superior options.

Tags: business models, music, myspace, social media