MySpace Is Going to Purchase Imeem

MySpace, news Corp.’s social networking site is ready to buy Imeem. It became known that MySpace would pay $1 million in cash.

Buying Imeem will enable MySpace to provide playing virtually any song over the Web at any time that will be free of charge. Imeem became very popular among Web users but there was a problem, i.e. inability to beget sufficient ad revenue to compensate high fees. According to the TechCrhunch blog, MySpace was going to buy Imeem on Nov. 16.

Spotify, a U.K.-based music startup announced about its delay to become available in the U.S. market. The main reason is in the following: it is difficult to reach a good deal with record labels. A for MySpace Music, the company has deals with four major labels that are considered to be free streaming.

Some cutbacks were made by MySpace Music, i.e. when a user visits a profile page, songs were playing automatically and now such function does not work.

Neil Smith, vice-president for business management at Rhapsody, criticized the record labels saying that the environment is created in such a way that it is impossible to have sustainable businesses. Rhapsody is an online music service that belongs to Real Networks. The goal of the company is to provide an opportunity for users to stream any song they want online for $15 per month.

Category: Business