03/05/2008, 8:35am, EST
Wednesday, March 5thFacebook to offer full-fleged iTunes rival?
Such a move would echo rumors of a MySpace store earlier this month, which also hinted at early negotiations to offer a mix of free streams as well as paid content. However, Facebook is expected to have an easier time persuading labels as it has encountered few if any complaints about copyright violations. Universal Music Group is still involved in an infringement suit with MySpace where it accuses the latter of violating copyright by hosting full tracks.
Both initiatives are believed to be prompted by a desire to tap into a ready-made audience that is not always possible with separate online stores, such as Amazon MP3 or iTunes.
Filed under: industry
Other story tags: Universal, Amazon, MySpace, Facebook
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Give me a second to get some popcorn and get more comfortable on my sofa. OK, now you can go at it, MySpace.
Yes, were myspace and facebook to start their own stores, they might sell some music out of convenience, but do you think they're going to have the same prices as iTMS? The labels have been foaming at the mouth for want of the ability to set their own prices in per-song downloads (thank you Stevo for sticking to your guns).
Their best effort might be trying to undercut iTMS in the beginning, and the reserve raising prices for later, as they did with Amazon.
These two sites do not have their own dedicated software and hardware lines to complete the whole package. I very much doubt they'll amount to much other than a distant rival in the downloads market.
If all of these stores fail, the record companies may just look at it as proof that customers must want DRM because they aren't buying non-DRM music. Yes, that's twisted logic; but we ARE talking about record company execs...
The interesting thing is to what degree Apple's strategy of using OS X in the iPod platform will pay off in creating a significant difference between them and their competitors. Creating software like the original iPods and Nano isn't that difficult. OS X more so.
So once again why is this a comparison to iTunes - why can't you simply say that Facebook is releasing an online Music/video Store and congratulate them an dmove along?