Myspace strikes deal with Sound Exchange

Since entering the internet lexicon in 2004 Myspace has been called labeled a lot of things: revolutionary, useful, addictive, and creepy to name a few. However, of all the terms that could be used to describe the website the last one that likely comes to mind it fair.

Myspace is aware of their fall in popularity as a social networking site. However, Myspace Music, (the section of the site that allows artist to make a page to post their music, pictures, tour dates, ect) is forever growing in size and annual advertising revenue. Surprisingly, Myspace is the largest advertising supported music website on the internet. They make more money than anyone else from recorded music, yet fail to pay the performers their deserved royalties. Seems unfair right? Well, that’s about to change.

Myspace just announced that it will team up with the company Sound Exchange to pay performers and copyright owners the appropriate royalties generated from their Myspace pages. Initially funded by the U.S. government, Sound Exchange is a not-for-profit company that collects royalties from internet and satellite radio or streaming stations on the behalf of performing artists and sound recording copyright owners. Basically, Sound Exchange keeps track of what songs are played, on what stations, and at what times, then compiles all this information in order to determine the money that each station owes it’s featured artists. Internet radio stations and other websites like Myspace pay Sound Exchange in a single payout semi-annually, and the company then distributes the appropriate monies to artists and copyright holders registered with Sound Exchange.

Here.s video explaining Sound Exchange . Note the super-cool graphics:



This deal with Myspace is a huge breakthrough for Sound Exchange, which main challenge is lack of awareness. Hopefully, by notifying all Myspace music users of Sound Exchange, thousands of recording artists will have the opportunity to receive money that is rightfully theirs.