IP Democracy: MySpace Makes Big Move Into the Music Biz

Hit social networking giant MySpace is moving into the online music business in a big way — the company announced yesterday it will sell music from three million unsigned bands. Not only will MySpace be an alternative to the dozens of online music sites on the web now, but it will also, in keeping with its youth-oriented user base, be an alternative to mainstream bands.

MySpace will offer the music of independent bands that don’t yet have a record deal. Moreover, it will offer the music in a non-copy protected manner, meaning that the music can be played on any digital device, a mode of distribution that is radically different from the record companies’ tight control. The bands will decide how much to charge for their songs after paying MySpace a distribution fee.

Just how much MySpace will generate from the sale of the little-known bands is unclear. But what is clear is that the off-beat musicians could continue to draw users to the site — and keep them on it. The News Corp.-owned MySpace already lays claim to 106 million users and if MySpace is going to maintain its phenom status, it has to keep adding attractions.

But, News Corp. doesn’t have to worry about MySpace cooling down any time soon. The site keeps gaining momentum. On Tuesday, we’ll have a bit of news about MySpace over at IP Media Monitor.

Posted by Cynthia Brumfield on September 2, 2006 5:12 PM to IP Democracy