MySpace IS Starting a Record Label

I read it in disbelief on PaidContent.org and Marc Canter's blog. So, I went and read the article they referenced - a lot more closely this time. Myspace is INDEED starting a record label:

Recently the growth of MySpace has allowed the company to move into sleek new headquarters in Santa Monica with glassed-in offices. Mr. Anderson acknowledges that he runs into employees whose names he does not know. The MySpace founders said the company will be starting its own record label in partnership with a major label shortly.

At the time of the News Corporation's decision to buy the site, Mr. Murdoch was asked by reporters if he was nervous putting more than half a billion dollars on two little-known entrepreneurs. "You bet," he answered. But he said his fears were allayed once he met Mr. Anderson and Mr. DeWolfe.

The founders seem reluctant to discuss anything about their coming absorption into the world's largest media conglomerate. Their silence suggests they may be nervous about losing their credibility as alternative-culture figures with MySpace members. They insist nothing will change. They will keep the same job titles, they say, and the site will look and feel the same.

"We get to keep doing what we're doing, and have more money to do it," Mr. Anderson said. "We're not moving over there, they're not coming over here. We just kind of go talk to them once a month and let them know what's up."

He said that as he meets with bands to sign up for the new label, he keeps hearing the same question: "How are you going to get me on MTV?"

"They don't quite get it, and I'm only starting to get it myself," Mr. Anderson said. "We've got our 26 million, with a lot more people logging in each day."

He added, with a shrug, "It's kind of like, who cares about MTV anymore?"

This is quite an interesting move. It is not what I would have expected. I can't say it is a bad move on paper when looking at the financially opportunity. Cause I don't know. But, strategically, this seems very dumb. Here's a list of questions I would ask before jumping into this:

• What about all of the independent labels that have supported/leveraged myspace? These labels are currently the link between unsigned acts and major distribution deals. Won't a myspace label be in competition with that process? Hello garageband.
• Is Hollywood Undead (1, 2) really any better than Kelly Clarkson? Alright. I love Hollywood Undead. I have listened to it a lot. I like Kelly Clarkson's new song too. But are insta-stars really respected in the long term? I guess we'll see. Will myspace create anything beyond insta stars?
• Will other major labels encourage their acts to use myspace if they perceive myspace as competition? NO.
• What about all of the other things that you could do ON THE INTERNETS to help bands? email newsletters, viral promotion beyond myspace, hosting videos, RSS event feeds for God's sake, non-oligopic ticketing, podcasting? Doesn't this stuff represent larger growth and more opportunity financially?
• Is this true to the roots? The magic of myspace [for bands and fans] was that it put everyone on equal footing. It put the same tools in the hands of the bands as it did in the hands of the business people and successful artists. Now you are introducing behind the scenes business. Whether you try to do that egalitarian-istically (word?) or not, people will be suspect.

Strategically, this seems like a bad move. Everyone, including the founders seem to refer to myspace as the new MTV. If they follow the path of MTV, they'll be making cash, but they'll eventually be irrelevant to music too. Just like MTV is. I guess we'll see. I expected a bit more creativity when approaching expansion... than starting a record label.

Comments

[Tom]

I can't believe you like Kelly Clarkson. Peter Caputa IV = Fired.

[Fatigue]

If it's not to much to ask, check out our page to see if "WE" have what it takes.www.myspace.com/aicmonstaz

[Terrence]

If or when you get a chance check out some of the music on my page!
myspace.com/projectaimsmusic

[dylan T]

help us out ;)

[James]

Oh yes great idea to create a Myspace record label yet another Mtv not a good movie just a copy-cat idea and what is good about copying something not really maybe similarity yet Myspace can do better than Mtv way better if they were to do better maybe go to maybe creating an online channel and improving the site or musicians and maybe helping those who don't have credit cards to be able to make money without havin to struggle with getting their music out or most people will seek record labels and not Myspace.Myspace has a bright future yet if they go after being a Mtv clone like Myspace Mtv then they will lose depth and we will not be helping the music at all we will be losin touch with music and we will be just tryin to please the world and what is good about pleasing the world some what yet not much.

[suppose ive spoken]

hi just seeing if u have time not that i agree or disagree with the label i just want my music to get heard by as many people as possible because i think its honest right up music if u can have a listen www.myspace.com/supposespoken

that wud be cool thanks

[agmetal]

www.myspace.com/agmetal

[SHERIDAN]

check out my space and leave a comment