Facebook is in the news again about its plans for getting into digital music. Namely, the news is that Facebook doesn’t have plans as of yet to enter the digital music business. I posted a story about this today on The Industry Standard called The Facebook Music mess. If you’re interested, give it a read.
As I was working on the article, there were five extra things that I wanted to include but didn’t. Here they are:
1) MySpace is going to kick Facebook’s butt in music no matter what Facebook does. MySpace Music, which officially launched in September, has a huge lead on Facebook in the music business. Even before the company’s new music site launched, MySpace already had millions of bands and musicians signed up and using the site as a promotional tool. MySpace’s roots are in music, and this lead is going to be unbeatable for Facebook.
2) It doesn’t matter that Facebook will be #2 in social music. Even though Facebook will not beat MySpace, it will still be in the music business. And Facebook won’t mind being number two because the multi-billion dollar music business is large enough for there to be more than one winner.
3) The suggestion that Mark Zuckerberg is considering getting into music out of jealousy is preposterous. Facebook has millions of registered members and those millions of members want to listen to music. Zuckerberg and crew are going to have to figure out a business model that works for Facebook and its users, end of story. This has nothing to do with jealousy; it’s purely good business sense.
4) Facebook does actually have a chance to beat MySpace – even in music – internationally. I have written about this in the past – Facebook is going to dominate MySpace in the global arena. It’s possible that Facebook may even beat MySpace in music internationally, especially since MySpace hasn’t launched internationally yet.
5) The music labels are going to have to step it up because they are ridiculously behind the times. OK, this might seem unrelated, but really, the record labels are getting more archaic by the second. According to reports, Facebook is having trouble working out licensing deals with the giants. Apparently, the big four labels won’t give up their music libraries without getting an ownership percentage in Facebook first. That’s just ridiculous on so many levels. There will come a day (I think) when the labels realize that having access to Facebook’s enormous, loyal, repeat audience will be worth the trade of their content.
And here’s the prediction: Facebook will get into the music business in 2009 and whatever the company decides to do will involve a partnership with Apple and iTunes.