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News
MySpace Considering Another iTunes Competitor
Wednesday, February 20th, 2008 at 3:00 PM - by John Martellaro
MySpace is said to be in talks with major music labels to establish an online, joint music venture to compete with iTunes and give the labels more control over music sales, according to Reuters on Wednesday.
The goal is to make Rupert Murdoch’s MySpace a premiere destination for digital media. Plans are still in the discussion stage in order to gauge interest. Once again, the theme is to provide a viable competitor to Apple’s iTunes.
MySpace had over 68 million unique visitors in January 2008, according to comScore. That would make MySpace an attractive venue for various kinds of music services from the major labels.
Not only would the venture compete with Apple, but also other independent companies like Imeem and last.fm. It’s not clear if the venture would involve Amazon, a company that the labels have been grooming as a flagship competitor to Apple.
The music industry, faced with continued declining sales, is working to develop new business models in which they have a stronger ownership and stake and avoid mistakes of the past. Whether this new effort achieves that goal, if it pans out, remains to be seen.
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