An Embarrassed Warner Music Regrets MySpace Music Deal
One thing is for certain - the six month old MySpace Music project is throwing off a lot of cash to the labels. That’s because MySpace’s 75 million or so U.S. users are streaming literally billions of songs a month. And they have to pay for every song streamed.
Labels are known to give streaming rates for on demand music of around half a cent per song play, but they are negotiated on a deal by deal and label by label basis. Journalists have tried repeatedly to understand the rates that MySpace is paying since the volume means lots of dollars are at stake. MySpace has always guarded this information closely, since it’s a competitively valuable piece of information. But there’s another reason they may be so secretive - the deals they cut with the four big labels may all be very different. And the deal they cut with at least one label, Warner Music, may not have streaming rates at all.
Our sources say Warner has been complaining about the deal they did with MySpace. That deal has no per song streaming cost, but includes a revenue share on advertising displayed when the song is played. That revenue share hasn’t been what they thought it would be. And the staggering number of plays of songs from their catalog, combined with their newly acquired knowledge that their competitors are being paid per stream, has left them steaming mad.
Warner will get little sympathy from, well, anyone. But they’re telling people that they plan to make changes when their deal comes up for renewal, or pull their music from the service. But the fact that their revenue share is significantly less than they thought it would be means MySpace Music may not be monetizing as well as they had hoped. That means the whole ecosystem may be in danger. If MySpace is facing tens of millions of dollars in losses every year (or more) from royalty payments, it’s only a matter of time before they’ll give up.
Already the service does things to limit streaming and associated costs, like only playing four songs on a playlist before asking if you are still there. That leaves the door open for services that have different business models and allow for the user experience to come first.
MySpace Music refused to comment on this post.
By @Corentin
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Comment
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Comment by Plim-Don on April 17, 2009 at 9:26pm -
Here we go ..
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Comment by isaac on April 17, 2009 at 8:41pm -
on some real s*** southpaw how you gonna talk about hustlin like its a possible option if there wasnt so many snitches but you also say that you would be a co thats rick ross's problem....pick a side one or the other you cant play football with a bat i mean after you get told on for hustlin you could lock your own cell at night im just sayin b s**** crazy idk and maybe it is just music to you but to me and alot of people its a lifestyle and a way of life they represent that me and a whole lot of other niggaz can relate to so yeah we expect or at least i do that some of my favorites will keep it real cuz if not and thats not happening than there's no point even listening to their s*** well for me anyway aiight im out enjoy your weekend and s*** soufpaw
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Comment by SoufPawSupreme on April 17, 2009 at 5:21pm -
what everybody fails to realize is that 99.9% of these artists are fraudulent juss like 99.9% of ya'll mofos is fake as hell swearin up and down that you the realest and smoke a pound a weed a day and bust 55 nuts everyday...c'mon!!! ain't nobody real out here. i look at music as entertainment. so i'm payin these mofos to entertain me...that's all i want. i f**** wit fif and i f**** wit ross. s***, i still bought curtis even though massacre was garbino as hell. hell, fif started f***** wit mase for god knows what reason. ross may have been a c.o...who cares! bills gotta get paid! s***, if a c.o. was the only job out there and i gotta eat, guess what? i'm applyin to that b****! f*** hustlin...too many snitches out there for me. it's juss music...ya'll act like if a muhfucka keep it real you gon get a scooby snack or some s***. buy, burn or rip ya s*** and move da f*** on. GEEZ!
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Comment by donprivilege on April 17, 2009 at 1:26pm -
I put my first music video on youtube.com five weeks ago to promote myself i'm about to put another video next month with contact information cause the first song number one did not have it,see my first music video on YOU TUBE.COM donprivilege
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Comment by edjesus on April 16, 2009 at 4:02pm -
DEEPER THAN RAP WHO GIVES A F***!
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Comment by edjesus on April 16, 2009 at 3:36pm
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I'm not going to front i use to listen to rick ross, and supported his music. I thought money was on point with his king pin lyrics and gangster persona, but soon as 50 pulled his cards with that C.O s*** and then the b**** n**** denied it, I felt like I got scammed for buying his albums! SO for this piece of s*** 3rd album DEEPER THEN RAP! to sell? a lot of fake niggas need to go out and support it! I rather support his babies mama's book deeper then rap, real talk. BEFORE I SELF DESTRUCT WAITING FOR THAT ONE 50.
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Comment by RayRay on April 16, 2009 at 2:21pm -
f*** warner! first they complained and removed all their videos on youtube (search for a T.I. video and you'll see) and now this! show no love
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Comment by 1900hustler on April 16, 2009 at 1:31pm -
ross is the boss...he joins the game as rappers that survived 50 cent jokes.
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Comment by 5star theoc on April 16, 2009 at 12:23pm -
myspace cool...but they need a music player like the ones -ning- got..
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Comment by mantana on April 16, 2009 at 9:24am -
I HEARD THAT N**** ROSS ALBUM...... S*** IS STRAIGHT TRASH ONLY 5 SONGS WHERE WORTH LISTENING TOO.....THE S*** THAT KILLS ME IS THE N**** HAS A SONG CALLED RICH OFF COCAINE BUT WAS SEARCHING NIGGAS ASS AND S*** IN JAIL FOR COCAINE OL CO ASS N**** LMAO!!!!
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