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NewsCorp. Out In The Market With Music

By admin ⋅ February 21, 2008 ⋅  Send this to a friend.. ⋅  Print this article. ⋅ Post a comment ⋅ Add to Technorati Favorites

News Corp.the owner of the one of the famous social networking site MySpace.com has dicussed  its idea of launching online music with four reputed music labels , music company executives familiar with the talks say.The media conglomerate thinks for a one-stop music service that has with it ways of offering content in various ways, including via free digital streams, as MP3 downloads and through a subscription plan.

News Corp. decided in launching the service as a joint venture which includes one of the major recording companies, which would receive an equity stake in the new company, the executive said.The music company executives spoke on condition of anonymity, saying they were not authorized to discuss the matter publicly.News Corp. and MySpace declined to comment.

Representatives for the recording companies - Vivendi SA’s Universal Music Group, Sony BMG Music Entertainment, Warner Music Group Corp. and EMI Group PLC - declined to comment.MySpace has been a popular music hub for years, prompting established acts and unknown bands alike to create profile pages that often let visitors stream a few songs. Bands on MySpace also can sell downloads of original music directly through their profile pages.

The company is looking out on ways to maintain its hand over its rival social network Facebook, which has been gaining in popularity.With sales of CDs in a protracted decline, recording companies have licensed their content for sale as unprotected MP3s and for free streaming on ad-supported sites such as imeem.com and Last.fm.News Corp. faces a potential deal hurdle with Universal, the largest of the recording companies.

Universal sued MySpace in 2006, claiming the portal illegally encourages its users to share music and music videos on the site without permission. That lawsuit is still pending.Sony BMG is a joint venture of Sony Corp. and Bertelsmann AG.

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