Free music websites, such as the recently launched MySpace Music, are finding that advertising is not generating anywhere enough revenue to cover royalty payments to the artists whose music they make available.
Advertising was supposed to be music’s magic bullet, enabling fans to get the free music they’re going to find anyway while contributing at least something to copyright holder coffers. That dream is fading fast. As legitimate sources for free on-demand music dry up, fans will likely head back to file sharing networks, which is bad news for everyone involved in music – except for, perhaps, hard drive manufacturers.
Can anyone say “subscriptions”?
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