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September 2, 2006

MySpace To Sell Music Through Snocap

Michael Arrington

42 comments »

MySpace is getting into the music business. They announced today that they will allow nearly 3 million unsigned bands to sell their music directly to Myspace users. Snocap will provide the back end technology for the service. The agreement also includes performance-based warrants to purchase stock in SnoCap(Fox recently took an equity stake in startup SimplyHired as well).

The music will be sold in MP3 format without copy protection of any kind (see eMusic and Amie Street for similar models, as well as others). This comes as major labels are starting to experiment with free music downloads, albeit with copy protection.

It’s unclear whether Myspace will also offer music from major labels pursuant to the deal. The agreement does not prohibit these sales, and Snocap has deals with most major labels. Downloads of music from labels would require copy protection pursuant to Snocap’s existing deals.

Look for additional deals from Myspace as they continue to develop their overall music (and revenue) strategy.

Note related news yesterday that Samsumg will also be launching a music store.

  • Sphere It

This entry was posted on Saturday, September 2nd, 2006 at 12:53 am and is filed under Company & Product Profiles. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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Comments

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  1. Startups.in/India

    September 2nd, 2006 at 1:15 am

    What cut would MySpace/snocap take out of a sale? Hope the artist gets the majority.

  2. web 2.0 logos

    September 2nd, 2006 at 1:42 am

    it get its hands on everything

  3. seth

    September 2nd, 2006 at 2:17 am

    Wow, hats off to them. Snocap is taking .45 per download plus the greater of .10 or 15% of the sale: http://snocap.com/about/faq/#q_8 so basically the artist is getting 45¢ on the dollar or less. (imho not very generous, but similar to iTunes).

    I’d like to know if Snocap has exclusive rights to sell music on Myspace? Will an indpendent artist have a choice or did Snocap just become “the man.”

  4. Sharpshoot

    September 2nd, 2006 at 2:50 am

    This is a great deal for snocap and for myspace, as music is one of the few things MySpace users will actually buy.

    Congrats to Shawn Fanning. Looks like he’s getting back on his feet after napster.

  5. Jonathan

    September 2nd, 2006 at 5:41 am

    ..How any artist would enter an agreement with a company like snocap after viewing how difficult they make it for Artist’s to read their “agreement” is beyond me. A horizontal scroll? Are you kidding me? They have all this open space on their site to place such crucial documents and they choose to place them in small viewing windows that require using both vertical and horizontal scrolling. Are you kidding me? I see, let’s just sign it because they make reading it such a hasstle. You won’t come across a more obvious tip off to the total disdain for a customer as this indicates…best of luck to anyone who gets involved…..NOT ME!

  6. Cliggity Clack

    September 2nd, 2006 at 5:48 am

    Seth–think you have it wrong on the pricing. If you check out the link you pasted, you actually list prices for two separate products. Snocap’s artist store, and sales through 3rd party Snocap retailers. The former seems to cost more b/c Snocap handles all the ops costs, while the latter is cheaper since it’s a more traditional retail model where costs are handled by someone else.

  7. NeoTechie

    September 2nd, 2006 at 6:39 am

    A meeting of the minds brought to you by Web 2.0.

  8. Phillip G

    September 2nd, 2006 at 1:13 pm

    This will be very interesting to watch. In fact I am watching Fox Interactive media closely for all of its decisions.

    Lets see where this goes. Will MySpace mobile (Helio I guess) be worked into this? I can imagine having a ringtone from a hometown artists from my school.

  9. marie

    September 2nd, 2006 at 1:37 pm

    They should have done this ages ago. THere is another company that wanted to do this, but not sure why they never did. Probably did not have the money. This other site has a very good idea though. Its like msypace, except you can upload whatever music you want

    http://www.mytuneslive.com

  10. Pradeep Sethi

    September 2nd, 2006 at 6:03 pm

    You are absolutely right Phillip. It is interesting to watch Fox interactive and the moves it is making.

  11. Adam

    September 2nd, 2006 at 8:08 pm

    Sly FOX

  12. William Volk

    September 2nd, 2006 at 8:32 pm

    The mobile ringtone market exceeds the online music market in size. Ringtone sales exceed $7B worldwide ($650M in the USA). MySpace members are using MyNuMo’s marketing tools to sell their ringtones, mobile wallpapers, and mobile videos every day.

    Thank you,

    William Volk

  13. Jack

    September 2nd, 2006 at 8:33 pm

    http://www.canadianmusictv.net an alternative with a TV audience

  14. actuel

    September 2nd, 2006 at 9:18 pm

    bad news. we’re now plunging folks…

  15. Jennifer

    September 3rd, 2006 at 6:09 pm

    This gets front page story status on CNN.com and http://www.cbc.ca (here in Canada). Is this story really THAT big of a deal or is it a slow news cycle.

  16. APOLLO

    September 3rd, 2006 at 9:56 pm

    Oh,what a great news..

  17. Jimmy

    September 3rd, 2006 at 10:04 pm

    I affirm myspace did a fool.

  18. dale boyce

    September 4th, 2006 at 11:57 am

    Myspace does it again!!

    Myspace are the trend setters. This is a great idea. Fox Media is really developing their product.

  19. nob

    September 14th, 2006 at 6:53 am

    Read that Myspace is considering using Allopass (http://www.en.allopass.com) as the e-commerce platform (provide with micro payment solutions, and have already a huge reach). Leader of micro payments solutions in France, they are baely know outside of this country, and it would be also a huge deal for Allopass!

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