MySpace raises $ 50 million to compete with Spotify, Deezer and Pandora
Business Insider obtained a pitch deck from Interactive Media, the company that bought MySpace for $ 35 million last summer from Rupert Murdoch’s News Corp. Later, the company raised money from investors like Justin Timberlake, and launched a redesigned version of MySpace. The turnaround was generally well received – Mark Cuban, while dissing Facebook in a long blog post last week, explicitly named MySpace as an alternative for his companies to reach out to its audience. But it’s still losing millions of money per year, which is why MySpace is considering a pivot (again).
The slides that Business Insider obtained show that the company wants to raise another $ 50 million to compete against Spotify, Pandora and Deezer.
Interactive says it plans to launch a music subscription business for mobile in the second quarter of 2013.
In the deck, Interactive says the big competitive advantages for MySpace versus Spotify and Pandora is that it pays labels a lower rate for song plays than Spotify and Pandora. MySpace relies on 27 million songs from unsigned artists, who account for 50 percent of the music played on its site.
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