How MySpace tries to set up revenue streams

A former recording label executive Courtney Holt, who is currently in charge of the recently restored MySpace Music, a joint venture with the major recording labels, is being asked to turn MySpace's attention to a music industry and to improve the mediocre finances of MySpace as it tries to fend off rival Facebook.

The service has improved a lot already with the aim of gaining a greater market share. Examples of these enhancements could be that MySpace users are now able to play multiple songs for free on their profile pages, rather than one, that they can create playlists that let them swap songs with their friends. Besides, the songs now carry links that let people buy downloads of the tracks from Amazon.com Inc.

The setup gives MySpace and the music industry a share of song-download sales from Amazon, and it could bring new revenue from ads. Next, Holt plans to make MySpace into a seller of concert tickets and band merchandise, while better targeting songs, ring tones, artists and ads at the people who will probably be interested in them.

Comparing it to one of the closes rivals, it could be said that Facebook has 200 million users worldwide, against MySpace's 130 million. However, MySpace is the largest social network in the US, with 70 million users a month, and Facebook has 61 million; Facebook does not yet have its own music player, whereas, MySpace does; estimated revenue of MySpace in 2008 made almost$585 million, which is about three times as much as Facebook's, eMarketer stated.

Holt also acknowledged that MySpace Music was a work in progress, and promised four to five "cool and evolutionary" improvements each quarter.