The parent company of MySpace is trying to raise $50 million in order to re-launch MySpace as a direct competitor to Spotify and Pandora in 2013.
Of the $50 million, $10 million will go to marketing, $15–$25 million will go to licensing deals with the music labels, and another $15 to $25 million will be reserved for "general working capital."
Interactive says it plans to launch a music subscription business for mobile in the second quarter of 2013.
In the deck, Interactive says the big competitive advantages for MySpace versus Spotify and Pandora is that it pays labels a lower rate for song plays than Spotify and Pandora. MySpace relies on 27 million songs from unsigned artists, who account for 50 percent of the music played on its site.