Los Angeles - After independent record label bodies including Merlin and A2IM criticized MySpace (NYSE: NWS) for not offering them an equity position in its MySpace Music joint venture with the major record labels, MySpace responded in a statement saying it offered all labels the same deal, while independent music digital distributor The Orchard, which signed on with MySpace Music, explained its decision. "We have offered a relationship with Merlin that provides equal opportunities to Merlin's labels and Merlin's artists that we have provided to ALL labels and artists whether they are Indie Artists, Major Artists or Unsigned artists," reads the MySpace statement.

"We hope that the entire Music Community including the Labels and all Artists will take advantage of the unique relationship that MySpace has built between Artists and Fans."

Greg Scholl, CEO of The Orchard, also spoke with Wired.com about the potential of equity stakes in MySpace Music for independent labels.

"Having a minority 'equity' position in a private company is, as anyone who has ever been involved in venture investing knows, very difficult to value outside of a lot of other complex factors -- and, it's highly illiquid and likely only to have economic benefit pretty far into the future," Scholl told Wired.com.

"What is more important to us than so-called 'equity,' in the near term, is using this launch as the opportunity to establish an aggressive, fair rate for our clients' share of ad revenue -- which we believe, similar to the way iTunes' pricing set the benchmark for the a la carte market, will likely serve as the benchmark for the ad-based market."

Related Links:
http://blog.wired.com/music/2008/09/the-orchard-ceo.html

http://snipurl.com/3v94q (Billboard)

http://snipurl.com/3v9eh (DMW previous coverage)