Social Networks prepare own Music Services
Posted on Sat, 19 Apr 2008 06:00:00 CDT | by Luigi Lugmayr
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By Antony Bruno
DENVER (Billboard) - One of the biggest new-media sensations to emerge from last
year were music-related widgets -- mini-applications that allowed members of
social networking services like MySpace or Facebook to customize their profiles
with such music features as streamed playlists and tour calendars with links to
ticket sales.
What helped the widget trade to boom in the first place was that MySpace and
Facebook didn't offer such services to artists and fans directly. But now that
MySpace is readying a full-featured music service of its own, and Facebook is
rumored to be working on something similar, what happens to all these widgets
that filled that void?
It's hard to imagine that MySpace will block these applications once the music
service rolls out. The company faced a harsh member backlash last year after it
started blocking widgets, and it joined Google's OpenSocial initiative
specifically to give developers the tools needed to write applications for
MySpace that can also work on competing social networks.
So if MySpace doesn't block overlapping services, what happens then? Here's a
quick snapshot of the main services MySpace Music plans to offer, the existing
providers of the same and how this might shake out in the months to come.
STREAMING/PLAYLISTS
Artists on MySpace can already stream songs in full, sometimes entire albums in
advance of their release, as long as their label gives the OK. However, MySpace
members haven't had the ability to construct and stream their own playlists from
their profile without outside help. The leading widgets that enable MySpace
users to do so are imeem and Last.fm.
Both are social networks in their own right that have capitalized on MySpace's
musical foot-dragging to lead the way in online free streaming, and both are
targeting MySpace's audience. It's unlikely that MySpace will rely on either to
power its internal playlist/streaming features, particularly as it's not that
difficult a service for MySpace to build on its own.
DOWNLOADS
To date, Snocap's MyStores widget is the only official download-to-own
application on MySpace. The site has blocked other third-party applications in
the past. (Most notably Indie911's Hoooka app, chaffing MySpace celeb Tila
Tequila when she tried to use it to sell her debut release.)
But the MyStores widget proved a bit of a flop. Slightly more than 100,000 of
MySpace's 5 million artists embedded the store on their profile, and few sales
followed. What's more, rival imeem has since acquired Snocap -- likely to add
its own download-to-own service as well. Expect MySpace to either terminate its
Snocap deal outright or simply wait for member artists to dump the app on their
own.
MySpace is keeping a tight lid on exactly how it plans to deliver full songs, so
any discussion of potential partners is pure speculation. One option would be a
MySpace-branded download service that uses technology from a third party like
MusicNet. Another would be to partner with an existing service, in which case
Amazon would be the most obvious contender given MySpace's well-established
distaste for digital rights management.
TICKETS
Any concert ticketing service will almost certainly have to include
Ticketmaster, but the wild card is iLike -- in which the industry giant owns a
stake. The No. 1 music application on Facebook has very little exposure on
MySpace, and as such has little to fear from an overlapping service.
But iLike has grown far beyond its tour-date roots. The company is making a
point of getting directly into MySpace's knickers by hosting artist profiles
where participating acts can stream music, post videos and more. R.E.M. made
headlines by streaming its new album "Accelerate" on iLike rather than MySpace,
generating 1.5 million streams in the six days prior to its release.
What's more, iLike syndicates artist pages across a host of participating social
networks -- including Facebook, Bebo and Hi5--and its recommendation engine
makes it easier for artists to add friends to their profiles. (U2 has 10 times
more friends on iLike than MySpace.)
"We always used MySpace as our inspiration and tried to innovate beyond it,"
iLike CEO Ali Partovi says. "They now seem to be duplicating things that we've
created."
Expect a level of "co-opetition" here. Using some form of iLike's iTunes plug-in
and viral touring promotion -- not to mention integration with Ticketmaster --
would only elevate whatever native ticketing application MySpace develops.
MERCHANDISE
MySpace will very likely team up with one of the bigger providers like Live
Nation and Musictoday to facilitate standard merchandise sales. But it also has
a relationship with online retailer Zazzle, which lets fans customize their
T-shirts, posters and other gear on-demand.
"We're not competitive with the merchandisers, the music companies or MySpace,"
Zazzle chief strategy officer Jim Heckman says. "We're just adding additional
monetization, so I don't see any reason why we wouldn't extend our strategic
deal with these partners."
Reuters/Billboard
© Copyright 2007 Reuters.
Posted on Sat, 19 Apr 2008 06:00:00 CDT | by Luigi Lugmayr
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