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Posted by on Nov 20, 2012 in News |

MySpace is preparing to fight against Spotify and Pandora

MySpace is preparing to fight against Spotify and Pandora

MySpace is a social network that has lost much popularity over the years. was acquired last year by a U.S. company trying to reach the top to the point of competing with Spotify and Pandora. Also recently surprised us with the new interface that could be seen a great effort in the field of design.

MySpace now aims to provide a catalog of to listen to streaming. From Business Insider found out that to get it is trying to raise $ 50 million. Of that $ 10 million will be spent on marketing dollars, between $ 15 and $ 25 million for the licenses with record labels and the remaining expenses it incurs for the new project. Note that the company is generating little income and need to raise some head way out of the red.

Future plans of the company have to launch in the second quarter of 2013 a music subscription model for mobile devices. It will be very difficult to fight Spotify and Pandora, a well established services already on the market. To do this, have 27 million songs from unsigned artists, ie they have no affiliation with record companies, which becomes more revenue. In fact, these artists own 50% of the total plays on MySpace.

If we look closely at the numbers, we observed that MySpace has sunk in an impressive manner. When was thriving sold for $ 580 million last year but only generated $ 9 billion in revenues. Throw yourselves accounts.

Nevertheless, the company has a lot of optimism and will do everything possible to re-grow and catch up to the largest now dominate music streaming. Do you think they will get?

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