MySpace challenges (?) iTunes with indie music store
MySpace has joined the recent crowd of iTunes wanna-be's. MySpace announced Friday that before the end of 2006 it will give unsigned, independent bands a place to sell their music. Musicians will be able to sell tunes on their own MySpace pages and on fan pages. And here's the best news--the MP3's sold at MySpace will not be shackled by DRM and will work on the iPod and other music players. Prices will be set by the individual bands, who will pay a "small" distribution fee to MySpace.MySpace co-founder Chris DeWolfe told Reuters: "The goal is to be one of the biggest digital music stores out there. Everyone we've spoken to definitely wants an alternative to iTunes and the iPod. MySpace could be that alternative."
Whether a MySpace music store is a real threat to iTunes Music Store is anybody's guess, but I'd say it's unlikely. On the one hand, independent, unsigned artists, no matter how good they are, are not direct competition for established musicians who have the backing of the powerful music industry. And iTMS is so entrenched as the place to go for music downloads that it will be hard to unseat.
On the other hand, in its favor, MySpace has a huge potential customer base for indie music. It's been ranked as the #1 most visited site on the Web and is wildly popular with teens, who are a great market for undiscovered bands. It will have lots of music to offer from three million independent bands. MySpace differs from other iTunes challengers, like Microsoft Zune, and the newly announced Samsung music subscription service, because its offerings won't be locked up by DRM, and MySpace is not controlled by the recording industry (although it is backed by powerful parent company News Corporation).
Should Apple be watching its back? What do you think?
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Reader Comments (Page 1 of 2)
dracula said 12:21AM on 9-03-2006
it all depends on how long myspace sticks around. who knows what will be of myspace at the end of the year? it could begin to receed or maybe it has yet to reach its most powerful moments...
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Chris P said 1:29AM on 9-03-2006
My deal is that myspace better get it's servers a little more stable and secure. Myspace runs so slow I can't imagine trying to download files from them. I'm also not to so sure I would trust them with my financial information.
It would be good if Apple came up with a system to let unsigned musicians to get their stuff in the iTMS. Although I don't think the labels would like that too much. Who would bother if they could get their music distributed in the #1 music place?
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mono said 1:53AM on 9-03-2006
I wonder why kids would buy MP3's when they can download them for free from some bittorrent place?
If you're an indie band really the only option you have is to give your stuff away and when you've built up your fan base, get yourself a proper record deal.
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tawny said 1:57AM on 9-03-2006
no, apple has nothing to worry about. who would pay for music from myspace?
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Paul said 2:47AM on 9-03-2006
Actually, artists don't really make that much from a record deal unless if you are a mega artist. Record companies have the tendency to really rip off new artists that they sign. I think itunes should have a system for indie bands to sell their music. The big record companies aren't going to leave cause people do go there to buy music. They are not going to pull out cause they make money from itunes. I'm quite sure apple can come up with a great way to make it work and somewhat please the major labels. Come on, it's apple, they always come up with something.
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Timo Kuhn said 2:53AM on 9-03-2006
you guys sound a little arrogant here... this is not about apple, it's about apple, nor is it about myspace, it's about the music. now, don't get me wrong, i love apple and the iTMS just like the next tuaw reader, but sometimes, you have to look a little deeper... DRM is BAD. always was, always will be... i know, i know... apple's got the best one out there at moment... but free will always be better than cheap, and by that i don't mean stealing music, but getting DRM-free music has just sooooo much more value than the iTMS stuff. (and i've spent quite some green in apples-all-so-perfect-store)
the days of the label are about to be over. no one will give a shit about a "proper" record deal... the music industry is like a dinosaur... and the ice-age is coming as certain as the next sunrise... (it might be cloudy tomorrow, but the sun will shine someday). Let the Sun Shine In.
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Piotr Malecki said 3:01AM on 9-03-2006
Let met guess who they've "spoken" to (about wanting an alternative to iTunes):
- Microsoft
- Real
- Creative
- hardcore nerds that want the iPod to support OGG (by default)
I think that's about it.
BTW Yes I do believe that there should be a REAL competitor to iTunes (one that has between 30% and 60% of the marketplace), but I definatively don't want it to be MySpace. Their site allows people to create the most vile and annoying pages on the net. (Especially with blinky stuff and autoplaying music.)
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Dap! said 3:53AM on 9-03-2006
#2: www.cdbaby.net will distribute your music to iTunes and Yahoo Music and others and keeps only 9c of what Apple would otherwise pay to record companies, if I recall correctly.
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Harry said 5:13AM on 9-03-2006
There are already sites that sell DRM-free MP3s of somewhat obscure acts, like Bleep and Calabash. Serious competition for iTMS is going to need somewhere where you can find the big new albums by major artists. And if ever the big music publishers are willing to let it happen, I'm sure Apple will be the first to drop the DRM.
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Noel said 5:49AM on 9-03-2006
Myspace is not a threat to the iTMS. However, it is unfortunate that Apple can not start it's own music label due the Beatle's Apple label lawsuit. Netflix has proven the business model by begining to become a very successful indy movie production/distrobution company.
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KAS said 6:53AM on 9-03-2006
Creative and iPOD The best!
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Stephen said 7:01AM on 9-03-2006
No way is MySpace.com going to win this. iTunes is just the simplest and best online music store. Mainly because it is supported by the iPod, the best selling MP3 player in the world.
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vivavegas said 9:53PM on 9-03-2006
Im a myspace junkie, and as far as I see it, myspace's servers f**k up way to much to be reliable. (sometimes it down for a day at a time). How can you sell music reliably if you cant even keep up a standard "blog" type of service. And anyways, when I was younger, and started out in music, I was happy to give out my music, so I could build a fan base (and get asked to play out, that's how you get noticed).
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Steve said 8:12AM on 9-03-2006
The Myspace founder is quoted as saying it can become a competitor to iTunes/iPod. But because MySpace music downloads will be DRM-less mp3s - and therefore work just fine on the iPod, I can't see how this challenges the iPod. Surely MySpace is adding value to Apple's music player - which is of course where Apple makes its money anyway.
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Ed said 9:06AM on 9-03-2006
MySpace hardly have shown any design sense have they? Sure, it'll appeal to some people, but signed bands are signed for a reason - they are popular and make money. Its like a company selling rejected products trying to compete with someone selling the same product, sure you might be lucky and get a few good buys, but the majority is going to be a waste of your money.
Bands that are popular with this system might get signed, then they'll not be selling their music on their MySpace page and on iTMS, hence iTMS will in effect be the majority of the market, with MySpace being the 'long tail' of not very popular stuff. Apple could start offering this service whenever they wanted to, and if they did we can be sure it would outstrip any competitors (look what the iTunes podcasting did for podcasts for example).
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Jon said 3:27AM on 9-21-2006
Well, iTunes could support this at any time. I wouldn't be surprised if Apple already has an publishing solution figured out for independents, all they have to do is turn the switch. As an independent artist, you can actually get your stuff on iTunes, you just need to go through an application process (which probably takes a while). https://phobos.apple.com/WebObjects/MZLabel.woa/wa/apply
I tend to agree that MySpace would offer 90% crap, but I think it's great thing for new artists. Better chances of getting signed and iTunes as well....
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D.J. said 12:02PM on 9-03-2006
Man so many thoughts are popping up on this. All good points. MAJOR Point brought up include MySpace's shakey nature. The site's down. The site's up. Error sending a message. I gotta message telling me I've ben deleted (this happened once... yikes). I'm back all of a sudden. What?!?
On the other hand, It's a solid idea. Independents are often independent out of a sheer distrust for established labels and "the man". Some music is darn near awesome if not INCREDIBLE, but they have principles they stand for and elect to remain independent and sell their own stuff. This is a great medium for those talents out there with this mindset. Will it topple/compete with iTunes and iPod? Heck no. But it'll compliment it very well for those of us that appreciate the indie mindset and endless pool of musical ecclecticity that comes from it. Much love to MySpace on this (and to the no DRM). And yes, Apple would do well to initiate some indie alternative in their store... but whatever. I'll use both until then. :)
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Steve said 12:41PM on 9-03-2006
The best independent music download store is emusic, DRM free downloads, a decent storefront, community features and a mac version of the download manager. Only issue is that you can't pay per indvidual download.
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Ron Martinez said 1:09AM on 3-17-2009
Apple wins either way.
iTMS is not the center of gravity - revenue>earnings>share value - for Apple. Do the math and you'll see with tiny margins the music store almost certainly just pays for itself. iPod and the growing ecosystem of related Apple products (including Macbook, and likely forthcoming "smart plasma tvs" - OSX hanging on your wall - are what matters.
I went to Snocap and signed up for the service. Purchased my seventy-nine cent track, hit "download" and down came the MP3. Convenient, simple, in-context purchase for pennies. And of course, up popped iTunes and the track began to play. Dragged it into a playlist, and it will end up on my pod.
This is what matters. All spoils to the winner, same as it ever was. Just because you can get music elsewhere doesn't mean you now have a reason to buy a funky/uncool music brand X music player.
Ron
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Blake said 5:51PM on 9-03-2006
No DRM? Yes please. I've never purchased any songs from the itms precisely because of DRM.
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