MySpace Adds Indies Nettwerk, INgrooves to Music Service

Authored by Mark Hefflinger on January 15, 2009 - 12:41pm.

Los Angeles - News Corp.'s (NYSE: NWS) MySpace online social network announced on Thursday the addition of a number of independent music distributors to its nascent MySpace Music service. The deals with Nettwerk Music Group, INgrooves, IRIS Distribution and RoyaltyShare, along with Wind-up Records, will add several hundred thousand songs to the catalog available on MySpace Music.

When MySpace Music launched in September, many independent labels initially balked at the fact that they were invited to offer their artists' music on the service, while not also being offered an equity stake in the venture -- as the major labels were.

Prior to today's announcement, independent music distributors The Orchard and IODA had already signed on to MySpace Music.

Merlin, a body of 12,000 independent labels that includes Beggars Group and Domino, was critical of the non-equity deals for indie labels, and remains a holdout.

"Any independent deal struck without an equity component (as was done with the majors), will see independent labels face a situation whereby their major competitors will profit from the use of their repertoire without an appropriate upside opportunity being extended to them by MySpace Music and its Major Label equity partners," Merlin CEO Charles Caldas said back in September, when MySpace launched the new music venture.

 

Related Links:
http://www.businesswire.com/news/home/20090115005741/en

http://snipurl.com/a4xaf (DMW previous coverage)

http://music.myspace.com

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