|
 Despite a well-publicized partnership to leverage their extensive user base with official music from the four major record labels, MySpace Music isn't living up to its hype.
According to a report by CNET.com, record label backers aren't happy with the way MySpace Music has performed, financially, with their 8-month-old service.
Although the social networking giant has driven huge traffic to their music service, it isn't translating into dollars for the long declining music industry.
CNET says that at a MySpace Music board meeting in April, MySpace's CEO Courtney Holt got all the feedback he needed or wanted from music label representatives.
"Several key players were unhappy" with how MySpace Music was performing, a source with knowledge of the talks told the site. Some board members want MySpace Music, the joint venture formed by the four largest recording companies and News Corp., to make changes such as boost sales conversions and do more to integrate the service with the regular MySpace site.
While the meeting was designed to provide "open dialogue" and "constructive feedback" from the board to the service's managers, the discussions were described as "tense."
Right now, this meeting is strictly insider info. Neither MySpace, nor their record labels partners were available for comment at press time.
The MySpace Music venture is the largest attempt so far to blend social networking with music. The site, for quite some time, has been a place for unknown musicians to showcase their music, and in some cases, garner record deals. Apple continues to dominate online music retail with iTunes, but MySpace Music is seen as a new opportunity to potentially entice the public into paying for songs.
They have the traffic, by MySpace is learning it isn't as easy as it sounds. Currently, the two main ways people are getting music are either through iTunes, or b illegal download.
Despite the report, a source told CNET that all the labels appear "very confident" in Holt and MySpace, and "nobody is panicking."
|
