Indie labels stiffed by MySpace Music launch
News Limited’s monolithic social network MySpace this week unveiled their latest venture to the world; the MySpace Music store, which they hope can rival the likes of iTunes. However it’s off to a shaky start, with independent labels and artists left out in the cold as deals have only been reached with major record labels.
Much has been said about MySpace Music’s tactic for gaining the approval and support of the four major labels, granting each of the key players equity (which means they share the profits) in the business enterprise. An equivalent offer was not made to independent labels, so it’s argued that – at the end of the day – not only will major labels profit from the success of their own artists, but they’ll also gain financial reward for sales from artists on independent labels as they have an economic stake in the overall MySpace Music operation.
Charles Caldas, CEO of Merlin, an organisation representing the rights of independent record labels globally, was understandably angered by MySpace’s decision to move forward with the store’s launch without an arrangement having been reached. “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.”
Considering MySpace has built much of its reputation on the strength of independent artists who’ve use the social network to get their name out to a broader audience, Caldas also feels comments made by Chris Dewolfe, MySpace’s CEO, are especially insincere. “It certainly makes Chris DeWolfe’s public statements, that the indie bands are really the heart of MySpace, ring extremely hollow.”
