Tuesday, August 01, 2006
Music Sites Need to SocializeThe synergy between online music services and social networks is obvious but so far under developed.
MySpace and Facebook are hubs for talking about music and are starting to link to services such as iTunes to sell music, but they don't have full access to a music archive. Services like Napster and RealNetwork's Rhapsody have the music, but don't have the social network capabilities of creating user pages to easily share playlists. Napster enables users to share music on social network sites, but the integration is incomplete.
Merging these services is inevitable if these companies are to survive. Turning the traffic of MySpace into marketing machines that close the commerce cycle enables them to capitalize on their audience. Napster users could allow the company to track the music that they listen to and rate it, creating instant user generated content that could be monetized.
Both sides have continued to lose money, so we should expect some deal making soon. Napster is reporting its income tomorrow, so we'll see if they are able to turn a profit. If not, I'd be giving MySpace a call pronto.
By John Gartner at 09:18 AM | Comments (0)