MySpace recently announced a new partnership with three of the four major music labels to provide digital downloads and free (ad-supported) streaming capabilities. The initiative is seen as an attack on both Apple’s iTunes Store and Facebook, MySpace’s biggest competitor in the social media space.
Music was the engine for MySpace’s early rise to prominence, but things have soured in recent years due to the glut of bands trying to find fans in an over-crowded marketplace. Instead of trying to cultivate indie bands (which MySpace does timidly through its own label) MySpace has cast its lot with the major labels. But the major labels are experiencing the worst drought of their history as they are attacked by angry fans and rampant piracy. This partnership means they are finally starting to embrace the technological changes that have rendered them moot to many music fans.
MySpace knows that the online destinations of music fans are important since those fans are the glue that holds their successful social network together. Facebook launched without a music service, but are increasingly eyeing that space as in-Facebook apps like iLike grow in popularity with users. Facebook has not overtaken MySpace’s lead in music, but to many users that’s a good thing. MySpace is swamped with bands desperately looking for listeners and many users have been overwhelmed with friend requests from bands they’ve never heard of.
The music industry’s biggest foe in these efforts may be Steve Jobs and his iTunes Store. iTunes is threatening to take Walmart’s place as the number one music-seller in America and the labels don’t like the idea of that much clout residing with one organization. Since Apple offers the most popular MP3 player along with the most popular download destination (besides the free pirate sites) it’s starting to look like Steve Jobs could eat the label’s lunch without too much effort. Partnering with MySpace may be the only way to stop the bleeding, but MySpace is no longer the undisputed social networking champ. Facebook services such as iLike leave the door open for independent bands and that appears to be the future, as both musicians and fans see it.