Friday, September 26, 2008

MySpace Music Launches- but Amazon is the clear winner here

The tech world's been buzzing with MySpace music officially being launched.

My personal opinion of MySpace was best summed up by John Paczkowski when he mentioned its:
deceptively flattering photos and seizure-inducing Web page design


In fact, a couple of weeks ago, I decided that I had all I could want and no longer needed my space (funny story... deleting a MySpace account takes up to 48 hours... seriously????).

That said, this week's announcement is a big win for one company... and it isn't MySpace or any of the record labels... it's Amazon.

At it's heart... MySpace Music is an affiliate marketing campaign. In case you don't know... this means Amazon will pay a referral fee to MySpace for every song sold through MySpace Music. While I have no ideas what the numbers are... let's make it simple and say that every song purchased is $1, and MySpace gets a $.05 cut. It's very much performance based marketing, and Amazon has made a killing doing this for years.

So in other words.... Amazon just got in front of 120 million people... with the agreement that for every $.05 they give MySpace... they get $.95 back (again... hypothetical numbers).

Again... if there's a winner in this announcement... it's Amazon.

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