MySpace Music makes peace with independent labels

Mon Nov 23 2009, 14:56 PM UTC

MySpace Music is gaining access to the song catalogues of thousands of independent artists by signing a deal with independent music rights body Merlin after a year of negotiations. The deal suggests Merlin has made its peace with MySpace Music, having blasted the project after its September 2008 launch for treating independent labels like "second-class citizens".

Deal Details

Without revealing specific details, the companies say Merlin's member labels will now be "eligible to market, promote, and monetise their content on MySpace Music". A Merlin nominee will also attend select MySpace Music board meetings.

MySpace would not comment on whether it had offered Merlin equity in the music venture, merely claiming the scheme will help Merlin "participate in and benefit from the financial growth of MySpace Music". This is something that has "long been important to securing Merlin's participation", MySpace claims.

Merlin, which represents about 10% of the global music market, previously failed to agree a deal with MySpace, complaining the terms MySpace offered Merlin’s members at launch were not as generous as those offered to the four major labels. Each major reportedly took a minority stake in MySpace Music proportional to their share of the US market. Merlin says it wasn't offered this.

When MySpace Music launched last year, the Orchard was its only independent licenser. It now has deals in place with groups including IODA, INgrooves and Nettwerk Music Group. The Merlin catalogue includes labels such as Domino, Beggars Group and Epitaph, with the body representing big-name artists such as the Arctic Monkeys, Bjork, Tom Waits, the Prodigy and Vampire Weekend.  

The global Merlin agreement seems to signal a new commitment from MySpace to work with independents. MySpace says all independent labels licensing music to MySpace will now be offered the same "eligibility and level of participation" as Merlin.

"We have worked hard with Courtney [Holt, MySpace Music president] and the MySpace Music team to find a way by which Merlin’s members could participate in the platform ... as well as benefit from the long-term value that they bring to the MySpace Music venture," says Merlin CEO Charles Caldas.

MySpace's streaming and download service launched in the US and is also available in Australia and New Zealand. Plans to roll out MySpace Music in the UK have been hit with delays over the past year.

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