Strategy Session: Preemptive Solution to a Potential MySpace Mistake

After my last post (which you probably should read before continuing here) I realized that while I pointed out a very relevant issue which could determine the future of social networking, I didn't do much to point out anything even resembling a solution.

Firstly, lets assume that MySpace fully executes its announced plan to rid profile pages of copy-protected music (no plans yet to systematically remove other media, "yet" being the operative word). As I pointed out, this action will not be without consequence, as a significant percentage of users currently have such music embedded in their profiles. With that in mind, I think the key strategy issue for MySpace is to limit this fallout, and the best way of going about doing that is to provide users with an alternative.

And, lucky for MySpace, the best alternative not only serves to keep the users happy, but could substantially boost profits in the process.

Ideally MySpace will arrange a deal with at least one major record company (or, dare I suggest, ITunes) to provide users with a pre-selected, and targeted choice of music which could be legally embedded into profile pages. Depending on how the deal is structured, this could be a potentially lucrative strategy. The record companies would likely pay a pretty penny to get exclusive access to provide the soundtrack to the lives of the massive MySpace population. A population which, I should point out, is extremely important to the record companies' continued existence.

Imagine the promotional and marketing opportunities such an arrangement would present, for example, allowing MySpace users to embed yet-to-be released or remixed songs in their profile before the album is available for sale to the general public. This would also be an incredibly savvy means to promote new or up-and-coming artists to a massive audience. These promotions could and would likely also be coupled with strategically placed banner ads (i.e. that display in the profiles of users who chose to embed the song). This is just one example of a strategy record companies could use in my proposed scheme, and there are numerous others that could be adopted. One thing to keep in mind though, is that the arrangement would have to give the users (at least the perception) that they have a large and broad enough library from which to chose songs. Arrogantly assuming users will simply take whatever song(s) a label is pushing upon them would be a very ineffective move.


As I've laid this out, I think it is clear that MySpace is at a fork in road, with one path leading to virtually assured disaster, and the other to the land of milk & honey (and profits). Only time will tell which one they choose, but unless they plan on bringing me on as a consultant, don't be surprised if they go after copy-protected music without much thought as to the consequences of their actions (or equally as likely, grossly underestimating the reaction to their actions).

Biting the Hand That Feeds You - Misadventures with Myspace

This week, News Corp's MySpace unit revealed plans to implement an "audio-fingerprinting" technology developed by Gracenote (venerable keeper of the Compact Disc Database aka CDDB) in an effort to block users from uploading copyrighted material. see article in NY Times

My first reaction was to applaud MySpace's adoption of a potentially great technology which I first started followin a few years back.

However, my second was one of astonishment.

For those of you who've been able to avoid MySpace or who are otherwise clueless about the company/website, check out the picture below:



The above is a screenshot of the profile page that a friend of mine's band maintains. You'll notice about 1/2 way down the page on the right side the little media player feature. Take a good look at it, because a large number of MySpace's members use the same (or similar) tool to insert music and movies into their profile pages. What kind of music and movies do you think these millions of members are putting in their profiles?

Yup, the copyrighted kind!

While I don't have access to MySpace's data, conducting a quick informal ad-hoc survey of a number of friends profiles I visited, more than a few of them have music or some other form of copyrighted media in their profile pages. Most of the time users simply embed a popular song(s) or video in their profile using MySpace's media player or a 3rd party tool.

Now with this copyright vigilantism, MySpace risks alienating (read: really pissing off) the same users who made MySpace the premier social networking site it is today. One would think that MySpace would learn from the Facebook faux pas earlier this year when the rival social networking site opened up its doors to basically anyone. Clearly, the installed base of these sites is not to be messed with.

While only the future will tell, I predict a significant protest to come from the MySpace membership, and possibly (although inprobable) a relatively large fallout from this disruptive decision.