MySpace have signed a deal with SonyBMG to allow users to post videos and music from Sony artists on their personal profiles (which ironically comes hot on the heels of MySpace’s digital music partner SnoCap melting down with half of its staff laid off).
SonyBMG will split ad revenue from embedded video ads (let’s hope they do this smartly and don’t over egg the pudding – see my colleague Nate Elliot’s invaluable report on how to do online video advertising well). They’ll also split ad revenue from SonyBMG artist pages and sponsorships – which illustrates there are plenty of ways for labels to work with social networks beyond the accepted norms. Social Networks are now firmly established in the music marketing cycle, but it’s easy to lose sight of the fact that it is essentially a nascent channel for music and the established practices are only just getting beyong iteration 1.0.
We’re just putting the finishing touches on a report that looks at using Social Networks to sell music in Europe – watch this space for details.