Still
on the brink of hiring a new CEO for the MySpace Music joint venture, MySpace chief executive Chris DeWolfe appeared onstage with Warner Music Group Corp. [
WMG] chief Edgar Bronfman Jr. and moderator John Battelle to cap off
Thursday's Web 2.0 Summit. Since the site competes on some fronts with Apple Inc.'s [
AAPL] iTunes store, Battelle asked DeWolfe one especially provocative question about MySpace developing a portable music device to rival the iPod. DeWolfe's reply included the words "it's possible," which
generated some headlines, but the spirit of his answer was still, "no, no and no."
In virtually the same breath, DeWolfe stressed that MySpace is focused on building community, while Apple is really a hardware company focused on selling devices. He returned to the community theme several times during the conversation, even suggesting that Facebook Inc. isn't a direct competitor -- "They're like a utility," he said, while MySpace is about "self-expression and discovery."
It's hard to imagine MySpace, or the MySpace Music division, whether it ever
formally separates from its parent or not, getting into the hardware arena on its own. But MySpace still has a strong enough brand name that it could partner with an existing device maker to create a branded player. Unlike iTunes, MySpace Music's online store sells exclusively DRM-free song files that can't be associated with specific devices. But would that really matter? If the MySpace Music service is as popular as the company
says it already is, any
perceived association with a device could move plenty of units. (Don't forget, MySpace has a young audience that isn't necessarily, shall we say, tech-savvy. And neither are the people who buy them stocking stuffers.)
Elsewhere in the conversation, Bronfman declared digital distribution to be "a commodity," and said that a label's value-adds are its editorial and marketing divisions. He also said that all of WMG's new contracts include rights to all of its artists' revenue streams, including merchandise and concert tickets, similar to the "360" deals
pioneered by Live Nation Inc. Such deals now account for about a third of WMG's artist roster, he said.
About that CEO search: Battelle's first question was about MySpace Music's search for a leader, which has been
problematic over the seven-month span since the JV was first
announced. DeWolfe, who has been leading the Music unit in the meantime, said the company has interviewed 40 candidates and made only one formal offer, presumably to top candidate Courtney Holt. He added that MySpace Music is "very confident" that it will be able to make a relevant announcement "in the near future."
- Paul BonanosSee Nov. 6 post from Tech Confidential about MySpace Music
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