Will Changes at MySpace Affect Record Label?

Earlier this week, Myspace announced a 30% reduction in its workforce, dubbed a “return to start-up culture”, causing a clamor of questions both internally and in the media. So how will the new company direction under recently appointed CEO Owen Van Natta (former COO at Facebook) affect Myspace Records? Spared from the initial cuts, we hear Van Natta is still assessing the future direction of the company’s record division. Regardless of the recent negative press, Myspace remains a social networking giant with an elevated platform in online music, which Facebook does not possess. Therefore, will the record division play a diminished or an even expanded role in the new MySpace regime? Recent breakout artists such as Colbie Caillat, Lilly Allen and even recent bidding-derby act Never Shout Never effectively harnessed Myspace’s social networking reach to garner a legion of fans and industry attention alike. With that said, will Van Natta redirect the record division to its full potential? Stay tuned…