MySpace versus iTunes

MySpace Music is preparing to launch what could be a major challenger to iTunes - a music downloading service created in partnership with three of the four major labels (EMI is the holdout, at least as of the time of writing). Users of the new service will be able to stream songs and buy MP3s, ringtones, concert tickets and more. The major labels have long been trying to figure out a way to make money on MySpace, and now, apparently, they've found it. One music industry exec, who asked to remain anonymous, told Reuters, "it's really creating a robust monetization component to MySpace and having a focused music effort that could be an MTV of a new generation." So, there you have it. The words "MTV" are enough to send shudders through major label accounting departments, as they had signed up early on to give MTV music videos for free, underestimating its impact, and then MTV out-profited them all. That's a mistake they're not eager to make again.

So, time will tell if this new service, which is simply called MySpace Music for now, will knock iTunes off its perch - iTunes has just surpassed even Wal-Mart to become the number one music retailer in the US. Time will also tell what effect this will have on independent artists who count on MySpace to promote their music. So, stay tuned. The launch date for the new service is between any minute now and Monday, but that could change as well. I'll keep you posted. If you use MySpace for promotion, let me know how you think this new service might affect you.

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