MySpace to stop free music streaming - the end is nearPosted on 07/07/10
The free streaming on MySpace may soon be history. According to people close to the News Corp. owned company, MySpace wants to move its MySpace Music section to a paid model. At the moment MySpace is rumoured to be spending $20 million/month (!) on streaming royalties. However sources close to MySpace say that the royalty payments are a lot lower although the service is indeed burning money at a fast pace. Fact is that News Corp. have a huge cash flow problem with the company. The Google search deal is up this month and MySpace sees a $300 million/year in revenue evaporate.
Recent reports say that the site's owner News Corp. is in discussions with Google Inc., Microsoft Corp. and Yahoo Inc. about replacing MySpace's crucial search-advertising partnership with Google. However, it looks like it that MySpace will soon be up for sale instead of being continued by News Corp. Fox Audience Network, which serves most of the ads on MySpace, is up for sale. If Fox Audience Network is sold, it's pretty sure that MySpace will follow the same way.
Add to that that MySpace Music was driving most of the searches that made up the massive page view obligations that MySpace had under the Google Agreement. With free music going away, those page views will go away, too. Meaning a search deal is even less lucrative. Add to that the news that was revealed yesterday by Techcrunch.com which says that visits to MySpace UK have halved in 6 months. In a desperate attempt to get the visit rates up, MySpace UK has been using a strategy of buying up cheap and sometimes unrelated Google keyword ads in order to generate 'dirty' traffic to bump up the publicly accessible comScore stats. And, if that wasn't bad enough, it seems that Facebook.com is the third biggest referrer of traffic to the site. In other words, Facebook is ironically keeping the site alive for the moment.
So bands who still count on MySpace, better start rethinking your strategy, because you'll soon be without a space (pun intended).
Posted by B. Van Isacker
More related news :
#366: A Life Lived release 'Demo 2013' demo
#366: A Life Lived release EP in October, new video 'Exit Saved' out now
#366: A Live Lived plan 2nd album for Janyary 2014
'A Synthesizer for Christmas' animated Hyperbubble video
'Electro Tribute To Oasis' released on Eternal Sunday Records
'Face The Beat Vol. 1' available now... for free !
'Gangnam Style' parody 'Whitby Gothic Style' goes over 230.000 views on YouTube
'Human Centipede' sequel barred from UK distribution for being 'too obscene'
'I Dream of Wires: Hardcore Edition' to hit stores on DVD and Blu-ray in early December
'Label Noir Vol.1' compiles cult acts from eighties
After the blue version of the 'Inhale' double-vinyl, Marsheaux returns with a limited edition gold double-vinyl, limited to just 99 copies. (...)
In 2013 the german act Umbra et Imago hit the road for 2 concerts in Erfurt and Dresden to present an all new erotic show. (...)
Alfa Matrix launches reduction code for Bandcamp and announces free CD compilation 'Sounds from the matrix 015'
The Belgian Alfa Matrix label has a brand new reduction code available for you for Bandcamp. (...)
My Life With The Thrill Kill Kult will be releasing their new 13th studio album, 'Spooky Tricks', on May 6th. (...)
The originally Johannesburg, South Africa, based band The Awakening has released its 'Anthology XV' album holding 18 career-spanning tracks, including remixes, new versions and 2 new songs, packaged in a digipack. (...)
Rational Youth announce first European shows in 15+ years + exclusive tour shirt (get it now - only 50 are being made)
Canada's Rational Youth is heading for Europe to play their first EU shows in more than 15 years. (...)
New Aesthetische album 'Hybridcore' out now in 2 versions - Front 242 fans wil dig this one for sure!
SUBSCRIBE TO OUR DAILY NEWSLETTER