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MySpace Allies with Record Labels to Thwart No. 1 Music Store, Apple’s iTunes

Date: 04-07-2008



Three of the four top record labels have struck a deal with MySpace to launch a music website called MySpace Music to prop up digital music sales as CD sales have dropped. Warner Music, Sony BMG, and Universal Music, along with MySpace’s parent company, News Corp, are vying to challenge the supremacy of Apple’s iTunes in the music world. EMI Group, the fourth major music corporation was not part of the deal, although it is expected to be soon. Apple, which has dominated music retail in the past six years, has, meanwhile, edged out Wal-Mart to become America’s number one music store. Tom Adams, president of consulting firm Adams Media Research, noted that “it is the first instance of an electronic venue surpassing a [bricks-and-mortar] retail venue for any kind of media delivery.”
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