Indie Labels vs. MySpace

Sometimes when you get too big, you forget about the little people.

MySpace has been known to portray themselves as friends to independent music labels. In fact, they often point out that they’re responsible for bringing into the mainstream artists like the Arctic Monkeys, who are on an indie label.

However, as of Thursday things have changed.

The site has launched a new music service and several indie record companies have “castigated the social network for offering more favorable terms to major labels with bands like Coldplay than those with acts like XL’s Vampire Weekend, which isn’t as famous but has a lot of online fans.”

So is MySpace $elling out?

Hell yeah!

L-A-M-E.

Charles Caldas, CEO of Merlin, an international licensing group representing over 12,000 indie labels, says that MySpace “just seems to be a massive disconnect within that organization between the reality of what they are building and what they think they have built.”

Charles insists that MySpace is treating its clients differently than that of larger record companies.

Here’s where it gets interesting.

Reports show that “MySpace Music is a joint venture between the News Corp.-owned social network and the Big Four labels. MySpace has given its partners an equity stake in the new service, but not to Merlin and other independent labels.”

So it is all about the money it seems.

Caldas adds, “The disappointing thing was to see that MySpace was going to launch without the labels we represent. We’re talking about some of the most significant independent labels and artists in the world.” Adding, “It just seems odd. Here’s a service that is built on the backs of those kinds of labels and artists. They are the ones its core audience is interested in.”

As for MySpace, which is owned by Fortune 500 company News Corp., it says they’ve done nothing wrong. Adding that, “We have offered a relationship with Merlin that provides equal opportunities to Merlin’s Labels and Merlin’s artists that we have provided to all labels and artists whether they are indie artists, major artists or unsigned artists.”

Even the biggest indie label in the US, Koch Records, is unhappy. CEO of Koch Records, Bob Frank, is said to be “livid” that MySpace would treat his company differently than those of the major label partners.

He says, “Koch Records isn’t just going to drop our pants and sign here without being treated like everyone else. How do our four competitors in a practical sense control that service?” asked Caldas. “That is some pretty sticky ground, I would think.”

What do U think of MySpace partnering up with the major record companies? Is it unfair to the indies????

Update: Myspace just sent us a statement on this situation.

They say….

“Since the beginning of MySpace, our music platform has been available for all bands at every level. We have been committed to the art of music providing unique opportunities to both indie and major record label artists.├é┬áThis is the first phase of MySpace Music├é┬áhttp://www.myspace.com/music. We have struck a deal with The Orchard, a leader in independent digital music,├é┬áand offered a relationship to Merlin that provides equal opportunities to Merlin├óΓé¼Γäós Labels and Artists, which we have also provided to the entire music industry whether they are Indie Artists, Major Artists or Unsigned acts. We hope that the entire Music Community will take advantage of the unique relationship that MySpace has built over the years between Artists and Fans.
-MySpace”