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Report: MySpace looking to reinvent itself as Spotify, Pandora rival

Written by Andre Yoskowitz @ 19 Nov 2012 12:54 User comments (2)

Report: MySpace looking to reinvent itself as Spotify, Pandora rival According to Business Insider, MySpace is trying to raise $50 million in funding so it can re-invent itself as a rival to Pandora and Spotify.
An ad company called Specific Media purchased MySpace from News Corp. for $35 million. In 2005, News Corp and its CEO Rupert Murdoch purchased the social network for $580 million. With the launch of Facebook, MySpace largely disappeared, outside of its music streaming capabilities.

After changing their name to Interactive Media Holdings and taking new funding from venture capitalists and even Justin Timberlake, MySpace's traffic has grown 36 percent since December 2011. Despite the traffic boost, revenues are still low and the company expects MySpace to lose $25 million next year.

According to their new plans, however, Interactive has some big plans, looking to become a music alternative to Spotify and Pandora. The company will need $50 million in new funding, with $10 million going to marketing and $25 million going to licensing deals with the labels. The rest is slated for "general working capital," as can be expected.

The new subscription music business will launch in the Q2 2013 if the funding goes smoothly. The company says it will have an advantage because they pay lower rates per song plays than their competitors.

Check the documents here.

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2 user comments

119.11.2012 18:25

I'd happily use MySpace if they'd bring iMeem back online.

This message has been edited since its posting. Latest edit was made on 19 Nov 2012 @ 6:25

228.11.2012 22:56

why not have artists allow their songs on the "myspace streaming service" just as they had the "myspace social network"? If it was good enough to be on the social site, make it available to stream.This would allow lesser known artists to be more readily available to users if they choose. That's why I like Jango for streaming. That would definitely be beneficial to artists and labels in the long run, but labels cannot look that far down the road.

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