The recently re-launched Myspace.com social network which originally rose to prominence on the pre-Facebook Web is facing a potential legal issue which could severely impact its revenue and potential for growth under its new management.
One of Myspace’s primary investors, pop music icon Justin Timberlake, recommended the revamped network take a “music-focused” approach to social networking in order to capitalize on a market currently dominated by Pandora, iTunes and Google Play. However, music licensing giant Merlin, which handles rights for thousands of small labels worldwide, has claimed that Myspace is currently utilizing many of the tracks in their extensive library without permission.
Kenneth Wisnefski, Founder & CEO of WebiMax, a firm specializing in online marketing and brand management, commented on this story. Wisnefski feels:
- At this stage in Myspace’s renaissance, it is necessary the company “covers its bases” in order to avoid negative press or legal issues which could influence usership and revenues and even this seemingly minor oversight could be a reputation issue for the company.
- The buzz surrounding the network’s return to prevalence could easily be subdued by such negative press and the music-themed site should attempt to renew its license with Merlin as to not limit its extensive track offerings while still adhering to licensing regulations.
- Myspace’s popularity reached its initial peak before Facebook’s arrival on the social scene and now faces a completely different landscape with competitors such as Twitter, Google+ and the aforementioned Facebook. These networks pose a significant threat to Myspace’s market share and may make a true revival difficult as much of the network’s audience has moved on to these competitors. To reach its previous level of success, it is necessary for Myspace to target and effectively reach an audience that these competitors cannot.
What are your thoughts, what do you think Myspace should do? Sound off below…