This isn’t a challenger to iTunes because the songs will be unrestricted MP3s, therefore leaving out the DRM-obsessed major labels. But it’s a great way to play into the allure of being part of the cool crowd — one of MySpace’s greatest strengths. Bands will be able to set their prices, with MySpace and Snocap each getting a cut. Fans can syndicate the stores on their MySpace pages, but it’s not clear if they will be able to take a share of the revenue as well.
While this a cool widget, I don't see this ala-carte MySpace store catching fire unless the larger independents and majors hop on board. Would I consider having Blackout! artists selling music through individual stores on MySpace? Absolutely, provided the labels rights were protected.
By using this somewhat traditional model of digital commerce, MySpace missed a huge opportunity to really seize the hearts and minds of music lovers. Instead of the pay per download model, they could have set up a low cost monthly subscription plan, that would rival eMusic. For a few dollars a month (or other incremental micropayment users) could dowload up to X amount of releases. I believe this would have ultimately created more long term value for labels, artists, and MySpace itself.