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Old 04-29-2008, 07:19 AM
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Independent Equity Details Surface on MySpace Music

(From Digital Music News) Major labels have equity stakes in MySpace Music, the soon-to-be-launched ecommerce initiative. But the story gets a bit more complicated for independent labels and unsigned artists.

According to information reported by Wired, independent labels unaffiliated with certain aggregators or distributors will not be handed equity stakes. The unaffiliated artists will receive a percentage of asset sales, but not a bigger chunk related to MySpace Music advertising.

In the article, MySpace cofounder and chief executive Chris DeWolfe alluded to that point, without specifically mentioning independent distributors like The Orchard or IODA. “We’re open to extending our equity deals to the right partners, but at a certain point, you can’t extend equity to everyone,” DeWolfe explained.
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