Following months of speculation MySpace has launched its much anticipated music service to the US market with the support of the big four labels and indie music aggregator The Orchard. The service ascribed by MySpace founder and president Chris DeWolfe as a “a new chapter in the history of the consumption of modern music,” will be launched globally “soon” but has yet to reveal details of the local Australian launch date which is believed to be in November.
The key to new music offering is its ecommerce functionality and the ability to build, share and recommend playlists. MySpace Music hosts more than 5 million major, indie, and unsigned artists within the site’s music profiles section. DeWolfe ushered in the service describing it as “the largest and most complex music initiative in company history.” He said that the social networker had been conducting focus groups for moths “and we think we have the product that users want.”
The new music product introduces premium audio and video content in addition to original video content that MySpace will create in-house.
The DRM free MP3 music download capability is serviced through its relationship with Amazon.
DeWolfe said that with the “CD market has dropping by 15% in sales per year,” the ability to purchase SMS ring tones, physical goods, merchandising and ticketing will be a boon to the dwindling sales for the music industry.
DeWolfe added that the other core revenue driver was integrated sponsorship with the new look site launching with four sponsors McDonald’s, Sony Pictures, State Farm, and Toyota.
The response from US digital pundits variously describes it as “Napster with a business model,” and still too limited in its scope and offering. While DeWolfe said that negotiations were still continuing with other music aggregators, The Beggars group, the largest independent in the UK said it failed to reach a deal with the social networking giant.
MySpace.com Business Development Director, Nick Love said it “is a phased global launch and at this time MySpace Music are not committing to any specific dates for roll out outside of the US. As with any global new product launch, the team at MySpace Music want to ensure we have the right local partners, market environment and ecosystem in place to ensure success, therefore beginning in the US and rolling out globally from there. MySpace Music are currently in talks with the music industry in the Australian market.”
