5 Reasons The New MySpace Music Will Fail

• MySpace is raising outside investment to dilute the risk of entering the music business, an industry that has shrunk 1/3 in the last 5 years. If they were confident, they would use their parent arm to fund itself.

• Seling DRM free-downoads is going to face many well-established competitors and will be diffcult to drive revenues. Apple still reigns, Amazon and others are lingering.

• Making money off of selling concert tickets, ringtones and other merchandise are all industries where competition is fierce. Live Nation and TicketMaster won’t be moved much.

• Ad-supported music streaming is going to be tough to monetize as the main revenue driver. CPM rates in music streaming are astronomical and will be tough to consistently find companies to stick around. Ads are a thing of the past, it’s called radio.

• MySpace has still yet to find a CEO. This venture has a lot of hype, with a lot of risk. Not too many CEO’s that are interested in entering DeWolfe’s party world.

Made tiny from: TechCrunch.com, GigaOm.com

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