Myspace Music is a music enterprise which is jointly organized by major music companies. All major labels like Warner, Sony, EMI and Universal have jointly invested to run Myspace music. Later many independent music distributors and major music companies have also joined this venture. Generally speaking everyone who has the rights for a particular music is a part of Myspace Music. It helps the users to stream the music from anywhere in the world and also make their own playlists consisting of their favourite songs. It allows the user to access any song that has been published free of cost. Then how and from where does the Myspace music get the profits to run the site for free?
Revenue for the Myspace Music
While a song is being streamed by a user, he will come across some ads. Thus, the streaming will be supported with some commercials. These ads may come at the beginning or at the end of a song. These ads form major revenue for the functioning of Myspace music. The revenue derived from the advertisements will be divided between all the partners in the venture according to the amount of share they had invested in the Myspace music.
Myspace Music Moves to a Pay Model
With all these features Myspace music should become instant hit among the internet users and bring a lot of revenue to the venture. But unfortunately that’s not the case with Myspace Music. It couldn’t attract many users even after the introduction of music service for free. In terms of being user friendly and providing good experience to its users, Myspace music has fallen right behind when compared to other music sites.
The increasing battle for the rights of a particular music is increasing day by day. A company has to fetch a lot of money to get the subscription of a single album. After getting the rights, it is becoming really hard for the companies to get back their investments. Even though Myspace Music has advertisement friendly streaming, many users are not showing great interest to listen to these songs because of all the annoying ads.
Many internet users are aware of plenty of sites that provide downloadable music which is free of cost. So, they generally prefer those sites as once they are downloaded they stay in their hard disk forever till they want to remove them. The users have an opinion about Myspace music as a place where it hosts clutter of ads and few songs in between them. Even if the service is free they are not ready to tolerate the ads.
All these factors resulted in very low revenue for Myspace music and the surveys state that it will deepen further. So, there is no way for Myspace Music from introducing pay model that is taking subscriptions from the users to run the website. Thus it became a struggling network of music unit, which had to begin charging users. The investing partners also confirmed that Myspace Music is considering Subscription Model for its survival.