MySpace Music, that long slumbering music unit of the struggling social network, is considering whether to begin charging users, according to a source close to the negotiations.
The source said Wednesday that MySpace Music execs have spoken to some of the top labels about creating a subscription service. This apparently confirms a report published Tuesday by the Web site of Side-Line, a music magazine. Citing sources close to News Corp., parent company of MySpace, the publication said it wants to move MySpace Music to a paid model and that it's burning through a lot of money each month.
MySpace Music is a joint venture operated by News Corp. and each of the top four major labels.That MySpace is considering a move to a paid model isn't a surprise. First, MySpace Music has underachieved in terms of generating revenue, multiple music industry sources said. "Numbers have been dipping of late," said a music industry source. Meanwhile, News Corp. Chairman Rupert Murdoch has been a vocal proponent of charging for online content, at least for some of his company's digital ventures, including video portal Hulu and the online arm of The Wall Street Journal.
No comments:
Post a Comment