MySpace Teams With Universal, Sony BMG & Warner For Music Endeavor
MySpace has formed a
ho-hum music venture with Universal Music Group, Sony BMG Music Entertainment and Warner Music Group. Although, financial terms were not disclosed, each of the labels will reportedly own a minority stake in the endeavor.
MySpace Music will offer free music and video streaming supported by advertising, paid-for MP3 downloads, ringtones for cell phones, concert ticket sales and merchandise. The backers are positioning the enterprise as a substantial iTunes competitor. How many times have we heard that before?? Considering MySpace’s wonky backend they don’t have a chance.
The deal was inked shortly after Universal Music agreed to settle a 2006 copyright infringement lawsuit against MySpace, in which the social network agreed to pay Universal upwards of $100 million to settle. EMI, and several Indies, are reportedly in negotiations to join the venture.
The Future: Touted as a “landmark joint venture” – this partnership is anything but…