(Sept. 6) - Apple rules digital music, but will it be able to fight off an assault from the hot social network MySpace? Tech analysts and Apple enthusiast websites expect Apple, which has a 70% share of digital music sales, to unveil a new iPod player next week that can sync with movies at its iTunes online store. On Tuesday, meanwhile, MySpace began offering unsigned bands a way to sell their music directly to fans online. The songs are being sold in unprotected MP3 format, a bonus for consumers who have been frustrated with purchasing copy-protected songs that wouldn't play on some devices.
"MySpace isn't a threat to iTunes now, but over time, it could become one," says Phil Leigh, an analyst with Inside Digital Media. "Their audience is so huge, and growing. I can see the major labels signing on to do this eventually." MySpace has nearly 50 million monthly visitors in the USA, according to measurement firm Nielsen/NetRatings.
MySpace CEO Chris DeWolfe says his goal is to have the largest online music store. "We're the biggest music site now," he says. "Converting to the biggest music store would be a natural progression."
MySpace is working with tech firm Snocap, which is providing the tools to sell the songs online. The tools work not just with MySpace, but also any website, blog or even an e-mail.
Snocap and MySpace take a cut of 45 cents per song, and leave the pricing decisions to the artist.
Meanwhile, all eyes are on Apple's announcement Tuesday about its new products. Gene Munster, an analyst at Piper Jaffray, expects it to confirm a long-awaited addition to iTunes: movie downloads. "For the consumer, this will be as big of a deal as the opening of the iTunes store," he says. "People have been asking for movie downloads for years."
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