Redmond, Washington — According to a fresh report from the technology blog AllThingsD, which indicates that Microsoft’s MSN is in preliminary discussions with MySpace about using the social-networking site’s music service, “MySpace Music,” to help beef up its own music offerings on the giant portal.
While sources at both companies appeared cautious as the talks are still in the preliminary stage and it was not clear what the financial terms would be in any tie-up between MSN and MySpace.
The main reason behind that is because Microsoft, which has its own music site called “MSN Music” consistently ranks considerably lower than other big online music properties in terms of traffic, while MySpace Music is always near the top, and that execs are interested in goosing it.
Nevertheless, music is a field where MSN cannot dawdle so badly in, given that entertainment is one of the key categories it is focusing on as it preps for a major renovation of the portal.
As BoomTown wrote in mid-July about a wide variety of changes coming to MSN:
“MSN, Microsoft’s online portal, is also preparing a major redo of what U.S. and, possibly, international consumers will see, as it doubles down on five key content verticals, while cutting back on others.”
It further stated that the agreement could involve licensing of music content and other related services, where the social networking website has a heavy thrust of late in order to distinguish itself from competitor Facebook.
Regardless of a rather similar range of services, such as playback of tunes, music downloads, info on concert appearances, etc, MySpace is apparently more appealing than MSN Music.
This is mainly because of the interactive nature of MySpace Music, which boasts of hugely trafficked forums for various sections, like acoustic and metal, along with a karaoke section that allows the users to post videos of their own renditions.
Focusing in a new dimension that will start to be apparent in the next month, MSN to a great extent will add to its News, Sports, Finance, Lifestyle and Entertainment offerings, weaving more data from its newly launched search service Bing into the mix.
“It is a decision to make it so MSN does less better,” said one source close to the situation. “So there will be a focus of attention on a smaller number of categories in which we can be either #1 or #2 in, rather than #4 or #5.”
But sources say that MySpace needs more than these, and a link with Microsoft would provide it with a traffic boost, since MSN’s main page remains one of the most trafficked sites on the Web.
If such a distribution partnership were struck, it would also raise the question of what will happen regarding MySpace’s negotiations with Google over renewal of their search deal, which expires next summer.
Interestingly, according to a recent report, both Google and Facebook were bolstering music search and sales offerings, and Google apparently includes the use of the iLike player.
In other words: this could really become knotty. Execs at both MySpace and Microsoft declined to comment.