The Orchard Cites Potential Problems with MySpace Music

When MySpace announced that it had deals in place with three major labels (with EMI said to be signing on soon) to share revenue from music streams and downloads, concerns about whether indie bands and labels would receive equivalent treatment under the deal sprang to mind.

With digital distribution leveling the playing field so much, it would be a shame if artists had to sign to a major label in order to receive their share. MySpace Music is a joint venture between the major labels and News Corp. Without a seat at the table, the indie bands that practically invented the idea of MySpace as a music destination could see money generated from their traffic flow to News Corp., the major labels and major label artists.

"As MySpace courts the major labels, it should remember to offer similaropportunities to the 7 million or so indie bands whohelped make it the web's default repository for music," we pointed out last Thursday. "If U2 andUniversal get a share of advertising, so should indie bands like Javelin."

In an e-mail apparently sent to its roster of indie artists andlabels, digital distributor The Orchard expressed similar concerns.
We're working on getting a copy of the full text of that e-mail to posthere, but Hypebot posted some relevant snippets:

"...it is unclear whether and how the equity the participating major labelsreceived will be shared by them with their artists, or with theindependent labels they simply distribute...To our understanding, independents have not been offered any equity.

"... Digital retail is fairer than physical brick-and-mortar retailever was. iTunes ...helped to shift music industry dynamics towards amore level playing field...In that light, if reports are true, theapparent MySpace licensing approach is troubling. It hearkens back toa time none of us wants to revisit ... Where independent artists andlabels were third-class citizens in the global music economy..."

See Also:

• MySpace, Major Labels Join Forces for Online Music Store
• Universal Music Group Sues Myspace
• Imeem Purchases Snocap

(via hypebot; Photo: A.A.)