April 27, 2010

MySpace to Pay Millions in Lost Royalties to Musicians

MySpace the popular social network for many independent musicians, has agreed to pay more than $14 million in lost royalties.

 

MySpace announced last week it had signed an agreement with performance rights group SoundExchange, to track down roughly 25,000 major, independent, and unsigned artists which are owed the lost royalties.

 

Owen van Natta, the CEO of MySpace said, they planned to use the MySpace platform to put the artists in touch with SoundExchange to register with the performance rights group, in order to collect the lost royalties.

 

SoundExchange is a performance rights group, which acts on the behalf of its members, to collect performance royalties, from websites such as MySpace, and streaming music like internet and satellite radio stations.

 

MySpace has recently been competing with Facebook to become the most popular social network. A deal like this seems to add some credibility to MySpace.

 

MySpace was created in 2003 and was the most popular social network, especially for musicians, to show case their songs, and act as a free online profile of the artist and or band. In 2008 MySpace lost the social network ground, and Facebook became, and still is the most popular social site.

 

Many independent and unsigned musicians use MySpace as an artist or band profile, and are able to upload their music for the public to listen. This has also been the main way for A&R reps of record labels, to listen to potential bands they are interested in signing. 

 

© Copyright 2010 Krule Music Group

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