MySpace Gets Revenue

It’s really great to see MySpace maturing its business model. There has been plenty of talk over the past months about the social networking site not having a model to derive revenue.

At the 06 AlwaysOn Innovation Summit, Chad Hurley, CEO of MySpace, looked very smug when the conversation headed in this direction.

The news that unsigned bands will be able to sell their music directly to MySpace members marks an important inflection point. Om Malik calls it: MySpace Records.

Keeping to their core value proposition – bringing people and music closer together is wise. There is plenty of time to move into other verticals as their brand grows from strength to strength.

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2 responses to “MySpace Gets Revenue

  1. Here’s a better way to derive revenue from MySpace: make it a better platform for the music industry to use to market content to the MySpace audience. Unsigned bands are low-hanging fruit, but it would be hard to find a customer segment less likely to spend money with MySpace, or a customer segment more likely to over-use your customer support. Instead, News should consider building a subscription based ‘MySpace Pro’ platform that has multi-user access, project management, and email/mobile marketing tools for music labels.

  2. alan, this is a good thought – i imagine the news strategy team has been contemplating a tiered approach to deriving myspace revenue. the big question is whether they can action this before their community turns to the next cool thing is social media – there are already indicators that the early evangelisers are moving on from myspace.

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