MySpace Teams With Record Companies To Create Music Site

The New York Times reports on a deal between MySpace and three of the four major music labels to develop a new music website. Users will be able to stream songs for free, purchase downloadable tracks, and (possibly) pay a flat monthly fee for unlimited access. From the Times: "Exact terms of the deal and details about the new site, like prices for downloaded music tracks, were not disclosed. But MySpace did say the site would offer songs free of digital rights management software or D.R.M., which is used to prevent illicit copying but can create technical hurdles for buyers. The songs would be playable on any portable music device, including Apple's iPod. For the music industry, the deal is partly born of desperation. In the face of widespread, escalating online piracy, music sales dropped to $11.5 billion in 2006 from a peak in 1999 of nearly $15 billion."

In the face of piracy?

[Anonymous Coward]

"In the face of widespread, escalating online piracy, music sales dropped to $11.5 billion in 2006 from a peak in 1999 of nearly $15 billion."

Misleading at best. Why are we supposed to automatically assume that piracy is the sole cause of the flatlining record industry profits? Digital distribution methods have increased exponentially, and they offer music at a far greater convenience and far cheaper price than physical media. Perhaps the mass exodus to cheaper digital downloads -- rather than ponying up 20 and 30 dollars for CDs -- has something to do with it? Maybe?

Re:Piracy's Not to Blame

[Trogre]

There is still plenty of music you can buy without supporting those fat cats.

Of course there's a chance none of it will be your cup of tea.

Just sayin'