MySpace Music - a place for major label friends?

MySpace has launched its long-awaited MySpace Music service in the US, offering music from all the major labels, but falling into instant hot water with indie label trade body, Merlin.

MySpace Music is ad-funded and offers free streaming of tracks, enabling users many different ways with which they can populate their profile pages with music that they like.


The service also offers music for sale. Sold in DRM-free MP3 format, the a la carte download service is catered for by Amazon and its MP3 store.

"Music has been a big part of MySpace since the beginning, and especially in the early days it was the heart and soul of what we were about. Since then, we've spent a lot of time trying to figure out what else can be done in music and where can we go from here," said Steve Pearman, senior vice president of product strategy for MySpace.

MySpace claims to have deals with The Orchard, and independent distribution groups ADA, Red, Fontana and Caroline - but indie label group Merlin says these firms are wholly-owned by the majors - they aren't "indie" at all.

Indie trade body, Merlin,whose members command a 9 per cent share of the US digital recorded music market (equivalent to EMI) said it is still currently in negotiations to license the world’s leading independent labels and artists to the service.

In a statement, Charles Caldas CEO Merlin, said: "It is incredibly disappointing that MySpace will launch their new service without having finalised a deal with the world’s most important independent labels and artists. It certainly makes Chris DeWolfe’s public statements, that the "indie bands are really the heart of MySpace", ring extremely hollow.

“While Merlin continues our negotiations, we remain extremely concerned that with MySpace Music the major record labels are acting not only as competitors, but through their equity stakes in the venture, as the clients/end user as well.

The questions raised by the indies have serious repercussions - the majors hold equity stakes in MySpace Music.




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