Monday, April 21, 2008

News Report 10: MySpace's Collaboration With Top Record Companies

According to an article found on the New York Times website entitled “Three Record Companies Team Up With MySpace for Music Web Site” just that is planning to occur. On April 4, 2008 Jeff Leeds and Brad Stone wrote about the launch of a music website created by MySpace in conjunction with the top recording companies. The companies will use the website to make their entire music collection digital in a way to compete with the iTunes store. Myspace wants to differeniate itself from facebook by remaining a good site to discover music and network with other music fans. The site intends to be a complete stop for all music through the addition of streaming music, shared custom playlists, and downloadable tracks. Over the past couple years album sales in the United States alone have been dropping and the amount of individual digital tracks purchased has increased. However, overall music sales have decreased and there is a strong need to compete against Apple’s strong business model.

MySpace has become a place where people look to discover new music. I think that from a business perspective the record companies are trying to diminish their losses and recognize the new shift that has occurred in the music industry due to the presence of technology. I believe their sales will most likely increase because of this new website. From a music fan point-of-view, I think the new website is a good idea also. I find new music through MySpace and usually wonder how I can download the track to my mp3 player. These songs are often not available to purchase online. This site might make that easier, however; if the music selection on this website is limited to only artists signed by the top 3 record labels there still might be a lack of selection and a big problem. MySpace has become known for Indie music and hopefully this site would make that Indie music available without stealing the profits from the artist. Through this venture, MySpace is definitely taking leaps to become a tough competitor with,, and Apple iTunes. (WordCount: 345)

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