MySpace Music Launches Without World’s Leading Independent Labels and Artists

25^th September 2008:- Said Charles Caldas CEO Merlin, Global Rights Body for Independent Sector:

“It is incredibly disappointing that MySpace will launch their new service without having finalised a deal with the world’s most important independent labels and artists. It certainly makes Chris DeWolfe’s public statements*, that the “indie bands are really the heart of MySpace”, ring extremely hollow.“What is absolutely clear, however, is that any independent deal struck without an equity or similar component (as was done with the majors), will see independent labels face a situation whereby the major competitors will profit from the use of their repertoire without an appropriate upside opportunity being extended to them by MySpace Music and its Major Label equity partners.“Whilst Merlin continues our negotiations, we remain extremely concerned that with MySpace Music the major record labels are acting not only as competitors, but through their equity stakes in the venture, as the clients/end user as well. Without an equitable participation by independents, that creates a situation that is both unhealthy and dangerous.“Merlin, the global rights agency represents the larger basket of rights outside of the major labels, with aUSmarket share equivalent to that of the smallest majors.”*Chris DeWolfe quoted in an interview with Laura Locke for wired.com17.04.08 – http://www.wired.com/entertainment/music/news/2008/04/myspace_musicSee also Eliot Van Buskirk’s blog on Wired.com17.04.08 – http://blog.wired.com/music/2008/04/myspace-music-w.html