MySpace- a Place for Labels?

It looks like Tom just got himself some new powerful friends, or is it the other way around? The company that was launched as a refuge for independent artists who aspired to showcase their music to major labels is now part of the majors,

In a news release from Warner Music Group it is stated that WMG along with Sony BMG and Universal have brokered a deal with Myspace to provide a platform for all musicians to sell music. The new entity will be called Myspace Music.

Imagine that, after A&R's have been trying to get executives to understand the cyber and digital trend some people finally got it. What a smart guy that Tom is, right? Well sort of.

Actually Myspace is operated by none other then Rupert Murdoch. Yes, the media tycoon who dominates the world with his Fox Media Networks is behind Myspace.

Murdoch's company, News Corporation (NWS) owns 20th Century Fox, The New York Post, The Sun and various satellites and media through out the world.

To simplify things Murdoch basically owns whatever his rival Ted Turner doesn't.

As his daughter Elizabeth is ironically getting coverage for hosting an upcoming fund-raiser for Barack Obama in her London home, the ultra-conservative Murdoch is securing deals with label owners.

This is a very intelligent and strategic move for the tycoon whom Turner simply refers to as a "warmonger."

Murdoch has always denied this claim. His New York Post surprisingly endorsed Hillary Clinton this year.

Ted Turner was Vice Chair of Time Warner and has interest in the company. Time Warner was partnered up with his Turner Broadcasting empire.

Under his leadership the company took advantage of the growing cyber industry by purchasing stakes in Google. Murdoch acquired Myspace instead.

Buying the virtual planet for 580 million dollars was another insightful move considering that brokers now value the company at 6 billion dollars.

As the music business continues to spiral downwards it just might be the place for friends that could keep the industry from sinking.

In an interview with Brian Morrissey of Ad Week, Myspace CEO Chris DeWolfe stated that "Myspace has an enormous scale with nearly 70 million monthly visitors in the U.S alone. Its music section already has 30 million visitors per month and 5 million artists."

What do all those numbers mean? They translate to the fact that Myspace is an advertising and marketing dream. It is the marketing and advertising aspects of the business that is hurting music labels across the world. Labels have honestly been unable to compete competitively in the cyber world of digital music.

Well, if you can't beat em' join em.' According to the Financial Trader, Myspace is expected to gross over 250 million in the 2008 fiscal year. This partnership is a promising outlook for the music business, as well as for major and independent artists.

The partnership is another expected success for Murdoch's NWS as well as Universal, Sony BMG and Warner Music Group.

Meanwhile, Ted Turner seems to be less interested in big business and more interested in his philanthropy efforts. Like Murdoch, the mogul has recently been in the spotlight as well.

Turner, who gifted the U.N with one billion dollars in 1997 now prefers to do more then donate but to be actually involved in his humanitarian efforts by physically being there and raising funds through awareness.

If people haven't been hearing of Turner doing historic acquisitions and mergers it is because he has been preoccupied with other business ventures.

Turner who seems to have had a spiritual awakening has recently been apologizing for once condemning religion. The mogul also announced his new partnership this week.

There will be no expected profit gain for Turner as he is joining forces with the Lutheran and Methodist churches in order to raise 200 million dollars to fight malaria in Africa.

There is also never a profit loss either for trying to save human lives, but there is an astronomical gain of love, purpose and happiness which is priceless.