MySpace Signs First Licensing Deal With Major Label; Will Share Revenues With Sony BMG

We’ve been hearing for a while about intense efforts within MySpace to explore new approaches and business models when it comes to music. Music powered MySpace to prominence and it’s key to fueling growth in terms of users and money. The latest step: a U.S. licensing pact with Sony BMG Music Entertainment announced today. The deal, its first with a major label, includes music video, “select audio material” and “other content” that will be available on Sony BMG artists’ MySpace pages. The two companies will share sponsorship and ad revenues generated by the music videos and profile pages. MySpace faces serious competition in music. Not only is much of the material offered by labels becoming ubiquitous through a host of licensing deals, as we reported earlier this month, Facebook is planning a late 2007 launch of an artist platform it hopes will outstrip MySpace. It includes a tie-up with Apple, something we heard was also in the works for MySpace but have been told by a source familiar with the situation that is not the case.
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