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Life.Tweakers.net - Nieuws [ MySpace sluit muziekdeal met Sony BMG ]
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Myspace brokers deal with Sony BMG.
MySpace has brokered a deal with Sony BMG for using their music and video through artist pages on the networking site. Sony, in return, will receive part of the advertising earnings.
This is the latest episode in the search for new sources of income for the record labels, in light of declining record sales. It was only this recent Summer that researchers urged the music industry to utilize the increasing trend amongst consumers, which is using social networking sites to get new music.
However this is not the only reason the site chose to go this new route: last year Universal, which like Sony BMG is one of the four largest music companies, sued the website for copyright infringement. Universal was not charmed by the fact that Myspace allowed users to add songs and videos of their artists to their profiles. Myspace responded by installing a copyright filter.
It's expected that allowing the posting of entertainment content on the millions of Myspace profile pages is a smart way of creating advertising revenues. For now though, the deal only allows the streaming of audio and video content through artist pages. This is scheduled to change in the short run, according to Myspace's Chris DeWolfe: 'We are looking forward to a good partnership with Sony BMG and the rest of the music industry by allowing users to use the next generation of Myspace services to share their love of music.'