IODA & MySpace Music

IODA has just signed a deal with MySpace Music to offer their catalog of independent artists to MySpace’s new music platform. This is a big step, and one that should assuage those complaining that MySpace music just caters to the major labels.

IODA is the Independent Online Distribution Alliance and is basically a marketing and distribution company for independent artists. IODA has over 1.5 million songs in their catalog. IODA will give their artists the option to join in this plan.

One key component to this deal was the lack of an equity stake in MySpace Music for IODA. It is estimated that somewhere around 40% of the ownership of MySpace Music lies in the hands of the major labels. What that means is that the major labels are not only making money when their songs are played, but also when independent artist’s songs are played.

Apparently, IODA bypassed the equity stake for more advertising money per song played. Perhaps that will benefit the actual independent artists more as long as IODA is passing along the money. But it is still a little crummy that the major labels gain in equity and IODA doesn’t.

More independent labels are reportedly in talks with MySpace Music, so we will see more deals in the near future. I will be curious to see if any more of the deals will involve equity in the company.

Stay tuned,
Erik
erikrostad.com