Music and MySpace go together like cheddar and macaroni, so it's not surprising to see News Corp.'s
Yesterday's New York Post details how Warner Music Group
EMI and Universal are likely to follow, even if Universal is currently in a legal tussle with MySpace. They can't afford to let Sony and Warner hog up the marketing muscle that a culture-shaping powerhouse like MySpace commands.
MySpace has always had a musical bent. It's hard to find an artist -- indie or signed -- without a MySpace profile page. Non-musicians are encouraged to add music to their pages from MySpace Music artists who agree to broadcast their tunes on other profile pages.
The only real question here is how important this new service will ultimately be. Ad-revenue sharing deals imply that there is enough advertising revenue worth sharing, and even ad-serving partner Google
Paying for downloads is even trickier, since Apple
In the end, it's easy to see why MySpace is dreaming big. It's the labels that I worry about. They can't approach this deal as salvation for their fading ways. It may be a temporary stopgap, but striking revenue-sharing deals on a site populated by cash-strapped teens is like slapping moldy cheddar on top of twice-boiled macaroni.
Longtime Fool contributor Rick Munarriz thinks it's cool that MySpace is able to please the majors while providing exposure to the indie musical artists out there. He does not own shares in any of the companies in this story. He is part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.