NEWS
July 31, 2007
Napster Creator Capitalizes on MySpace

Napster creator Shawn Fanning is at the forefront of digital music distribution once again. This time his company, SNOCAP, has linked up with social network sites such as MySpace in order to distribute music to fans within similar demographics, according to a report in Billboard.

Instead of a traditional online store in which consumers visit in order to purchase their music, SNOCAP provides for the sale of music anywhere HTML code can be edited. This strategy relies on the popularity of social networking sites as self-marketing tools for the music, meaning that each MySpace page can become a de facto music store.

Songs will sell at .39 cents per download.

SNOCAP's affiliation with MySpace has led other companies to follow suit. EMI has signed a deal with SNOCAP to release music from its catalog of artists. However, EMI will face trouble because it will sell music without digital rights management protection, which is essential to synching files to an iPod. Warner Music Group has signed on with IMEEM, a social networking site for music aficionados, and will release music on Microsoft's WMA platform.