Guess how much money Myspace made in 2011. Just $9m. That’s according to a pitch deck from the site’s owner Specific Media, which was published yesterday by Business Insider.
The company is predicting that the all-new Myspace will generate $58m of revenues in 2013, $102m in 2014 and £140m in 2015 though.
The deck also offers some insight into how Specific Media plans to do this, including a “mobile subscription model to launch in Q2:2013” and a “transaction model for related e-commerce” launching in the second half of next year to sell merchandise, tickets and music downloads.
Also interesting: Specific Media’s claim that its music costs per listening hour per user are much less than Spotify and Pandora “because our proprietary 27,000,000 song library from unsigned artists accounts for ⁓50% of song plays on our services and has a zero cost basis”, as well as the fact that Myspace pays “the lower Radio rate on the vast majority of our label related song plays”.
Oh, and Specific Media is planning to raise $50m of new capital in order to spend $10m on marketing the relaunch, $15m-$25m renewing its licensing deals with labels, and $15m-$25m for “General Working Capital purposes”.
It’s very optimistic: our main reaction is that while around 50% of song plays may have come from unsigned artists when Myspace was a social network, surely reorienting it as a music service will shift the balance more towards big artists and more towards on-demand plays? Still, you can’t fault Specific Media for ambition.