Friday, September 12, 2008

Myspace Music Launching Soon in the Wake of Muxtape

Myspace is launching its new free music platform. This will allow users to organize and listen to music from the big U.S. music labels free of charge. The labels are hoping to recoup money from lost cd sales by monetizing ad revenue on the site. I'm not too optimistic Myspace music is going to deliver significant revenue from advertising. We'll see how it is deployed. If ads are inserted into free content - then I can see it working to some extent. At least advertisers could be assured their message is being heard. But if the advertising model is simply pay per click, I don't see it generating much revenue. Fraudulent clicks are a huge problem in the pay per click model. Also, are users going to leave the free music content to watch advertising? Me thinks not.

It is a shame that Muxtape was shut down by the RIAA, it seemed like a much cooler, user friendly and interactive site. I wonder if Myspace and Newscorp had anything to do with that?

For further information regarding pay per click advertising and other online advertising revenue streams, consult an experienced internet law attorney.

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