Myspace seeking more pre-launch funds, music subscription plan timed
20th Nov 2012 | 00:02
It's all coming together...sort of
The New Myspace won't let you in on its musically themed fun until early next year - perhaps a good thing for its parent company, Specific Media.
According to a leaked investor presentation picked up by Business Insider, the company is looking for $50 million (UK£31.4, AUD$48) in additional seed money to get the re-imagined social site off the ground.
While the need for more money is none too surprising, especially in the face of a 2012 loss of more than $40 million (UK£25 million, AUD$24 million) with just $15 million (UK£9.43 million, AUD$14 million) in revenue, the presentation reveals a piece of info unknown until now.
One slide lays out how Specific Media's plans to launch a music subscription model for mobile apps, one users should see during the second quarter of 2013.
Myspace's owners and current investors are positioning the site to be a space for creatives, musicians and their fans - a place to connect, share, look and listen.
While that's a consumer-centric view, Specific has a clear vision it is trying to implement to take on Spotify, Rdio and Pandora.
According to a slide from the presentation, Myspace has the "largest music catalogue in the world with 42 million songs," plus direct relationships with 5 million artists.
The firm owns what it called a significant catalog of royalty free music and is the "only company with global music rights from all major and independent labels for streaming, music download and mobile subscription."
Myspace may not make any money now, or anytime soon as losses for next year are projected at $25 million (UK£15.7 million, AUD$24 million), yet the site is morphing into a serious musical contender.
It has received positive critical reactions for its look and feel, though naturally it comes down to whether people use it or one of the services with less of a "history" already out there.
Spotify confirmed last week that it's rolling out a web-based version of its services, a player outside the company's app that should launch sometime next year.
In an interview with Quartz, Daniel Ek, Spotify's founder, compared his site to Amazon - a low-margin business that's willing to be "misunderstood for long periods of time."
He laid out Spotify's plans to take advantage of the new way people access music - creating playlists that can charge for songs repeatedly rather than single-purchase CDs - describing at the same time the new way people consume all sorts of content.
Myspace seems primed to be just what Ek described - an underdog that gives people exactly what they want, even if they don't know it.
After another few million, that is.