BEVERLY HILLS, CA (Hypebot) –
MySpace Music is “almost certainly” going to restrict free streaming and move to a paid model says TechCrunch citing multiple sources. “They are spending $20 million/month on streaming royalties, and that just isn’t sustainable,” said one source. Many believed that MySpace Music was immune in part because it is co-owned with the major label groups.
The company hasn't commented on this story, but the report is consistent with recent statements by MySpace parent NewsCorp Chairman Rupert Murdoch that a free web is unsustainable. MySpace is also feeling the pressure of falling visitor counts and the resulting drop in ad payments from Google that will fall significantly beginning in June of 2010.