MySpace To Create Digital Music Player?
MySpace, the incredibly trendy online social network possessed by Rupert Murdoch’s News Corp, may expand its popularity by creating a digital music player in the near future, possibly competing against Apple Inc’s successful iPod.
However, there are no current plans to craft or market such a device, MySpace co-founder and Chief Executive Chris DeWolfe on Thursday.
"It’s possible" that MySpace, which of late instigated a music joint venture with key music labels, may sooner or later manufacture a device for listening to music, DeWolfe said.
"Right now, we’re just focusing on the service," DeWolfe said at the Web 2.0 summit, located in San Francisco.
MySpace, the leading online social networking site, started MySpace Music in September, endeavoring to become the decisive site for music fans.
The combined venture between MySpace and key music labels like Sony BMG Music, Universal Music Group and Warner Music Group allows people to access a large range of music services, like streaming, music and ringtone downloads, videos, ticketing and merchandising.
McDonald’s, Sony Pictures, Toyota and State Farm are advertise on the site.
"We wanted to come up with a program that meets the needs of music companies and artists, by definition, and users," DeWolfe said.
People streamed music about 1 billion times in the early days of the new venture and have fashioned 80 million playlists, DeWolfe said. Five million bands uploaded their music as well.
Music companies have been enthusiastic about additional options to increase lagging CD sales. Powerful competition from iTunes, Apple’s digital music store and the highest U.S. music retailer, is a big reason that the sales have decreased in recent years.
Warner Music Group Chief Executive Edgar Bronfman said MySpace is unlike iTunes in that its focal point is on "community and sharing." Members can share playlists, look at their friends’ music preferences and find new songs, Bronfman said.
Apple too has newly released "Genius," which creates playlists and gives suggestions based on songs in am individual’s iTunes library.
However, DeWolfe said that the "Genius" element does not make iTunes an opponent to MySpace Music since Apple persists to focusing on sales of their music devices.
"If anything, we’ll be accretive to iPod sales" as people continue use MySpace Music to download additional music and videos for their iPods, DeWolfe said. "Unless we develop a device," he added.
Even though this idea is in its infancy, it would be a bold step for MySpace, which basically defined the growing social network concept as a major business.
MySpace, which News Corp purchased for $580 million in 2005, has established a bright spot for Murdoch’s international media corporation, even as the corporation looks towards a rough 2009 due to decreasing advertising profits in other parts of its business.
The site also faces rising competition from networks like the privately-held Facebook, as they all fight to discover more ways to make a profit from the millions of people who interact with others through their online profiles.
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