MySpace, which built its music business' image on being independent, faces dissent from the indie music industry
The MySpace Music service officially launched yesterday. The site now provides an MP3 shopping solution via Amazon MP3, which offers DRM-free 256 kbps tracks for as little as $0.89. The new site has the backing of all four major labels. It's looking to take on iTunes, the number one music retailer in the nation.
The music branch of MySpace always thrived off of an independent image. This is evident by its extensive advertisement deals with independent film studios and its promotion of indie artists such as Sara Bareilles, Matt Costa, and MGMT. When MySpace launched, it was expected that it would launch hand in hand with the independent music community.
However, the newly conceived service is being blasted by some independent music's top representatives. Rich Bengloff, President of the American Association of Independent Music which represents Saddle Creek, Matador Records, Sub Pop and many other independent labels, released a statement that blasts MySpace for its unequal treatment of independent music industry that bred its success.
At the heart of the conflict is that MySpace gave the major labels equity, but refused to allow independent labels to become equity participants. Mr. Bengloff stated, "We at A2IM echo the comments of friends in the independent music community, such as MERLIN, in our shared view that any independent deal struck without an equity component, (as was done with the majors), will see independent labels face a situation whereby their major competitors will profit from the use of their repertoire without an appropriate upside opportunity being extended to them by MySpace Music and its major label equity partners."
Additionally, the independent labels are frustrated that MySpace Music features only some independent distributors and aggregators, leaving out many notable independent labels and artists.
Mr. Bengloff and independent music leaders are hoping to work with MySpace to obtain equal treatment for smaller labels. Also, it is hoped that MySpace will expand its offerings, adding more independent labels in the near future. However, independent musicians and record labels are adamant -- if MySpace Music turns its back on the independent music, which made it, the independent music community may turn its back on MySpace.
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