The music space news keeps coming. MySpace is launching a music service with 3 out of the 4 majors on board (EMI curiously sitting this one out). It could obviously have a huge impact and you have to believe that Facebook will do the same thing. It will likely not have that much effect on Apple/iTunes but could have a big impact on others such as Amazon. For right now it is a little hard to discern what will be the major focus of the MySpace music service because the press release seems to indicate that they are offering everything. The unique aspect is the tie-in with MySpace where lots of kids spend lots of time. Still if I have an iPod I will likely only “listen” on MySpace (perhaps via ad-supported model) and continue to “buy” from Apple. Another interesting angle would be if ad-supported model generated enough cash to “subsidize” lower download pricing. That might move some people away from iTunes but it probably would not matter a great deal to Apple anyway as long as the iPods kept flowing. Now if there was all of a sudden a ton of cel phones that supported the MySpace music service that might move the needle. Over-the-air content acquisition would also be cool and a clear differentiator because you take the PC requirement out of the picture.
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