As I talked about in my post in September, Myspace is ready to relaunch. They plan to come back and dominate all of online music. If I were them I would too!
Interactive Media Holdings along with Justin Timberlake bought MySpace for 35 million. They have been slowly but surely revealing new ideas and concepts for the newly designed MySpace. First, a video of the layout and the shocking announcement that all old users and pages would be deleted once the site was revamped.
According to a leaked investment presentation Myspace is seeking to raise an extra $50 million in order for the relaunch to be seen as a direct competitor in the digital music streaming industry. This would be pitting it head to head with popular streaming leaders like Spotify. Who actually received a $100 million boost from investors at Coca Cola.
MySpace has many advantages over its competitors. Its been stated that Myspace has the largest single library of songs, at 42 million, while Spotify’s library has around 18 million songs. MySpace also has access to over 5 million users (artist).
One big difference in MySpace is royalties. Which is a big deal, as we see in the recent dispute with Pandora. The type of royalties Spotify pays is On Demand to record labels. And pay close to 7c for viewing . While MySpace has millions of songs of unsigned artist. They will nearly have to pay 1c a hour viewing.
“Myspace believes that it has a significant cost advantage with respect to the music streaming costs compared to Spotify and Pandora because of their proprietary 27 million song library from unsigned artists, which accounts for around 50% of songs plays on Myspace and has a zero cost basis.”
Although MySpace will no longer have the older format they plan to revamp and really be friendly to all artist… Musicians, painters, etc. They will have a main focus on music to stay true to their original beliefs and values.
Does this look promising?