Independent record labels have hit out at mySpace’s new music service, saying that they’ve been unfairly kept out in favour of the majors.
The new MySpace Music service allows labels to upload their back catalogues for streaming. Thus far, the Four Horsemen Facing An Apocalypse (that is Universal Music Group, Sony BMG Music, Warner Music Group and EMI Music) have signed up for the service, but Myspace have yet to reach an agreement with the independent sector.
The sticking point is this: as well as a share of ad revenues, the majors have been given a stake in MySpace Music. The independents, represented by the Merlin umbrella organisation, are arguing that they should be given a state that reflects their nine per cent market share.
Merlin boss Charles Caldas said in a statement, "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."
MySpace, however, appeared to contradict Merlin’s claims, saying, "We have offered a relationship with Merlin that provides equal opportunities to Merlin’s Labels and Merlin’s artists that we have provided to all labels and artists."
