Nothing like a head to head duel between the predecessor of social networks and the dominator.

MySpace is coming out of it’s "dormant" state by purchasing iLike, which happens to be one of Facebook’s most popular applications.  MySpace has surely strengthened it’s position with digital music in the major label arena.

Does Facebook have bigger plans?  If not, MySpace has put a stake in the Facebook territory that makes space for some uncomfortable sharing. At $20 million USD, it has to be wondered why Facebook did not buy it themselves.

If Facebook is to continue with iLike, they’ll be promoting their chief competitor.  On the other hand, if they simply quit, they’ll be losing their greatest asset in the digital music arena, which is said to cater over 55 million users.

What does this mean for Indie artists on MySpace Music?  Unfortunately, most likely nothing.  In regards to sales, MySpace has streaming rights, not download sales rights.  The joint venture between MySpace Music and Major Labels is losing $20 million per year due to massive royalty payments for "public performances" of music.  In addition, a deal that MySpace had made with Google for providing their search results is going to end next year, which sheds a dim light on financial prospects.  It is unlikely that MySpace would then focus their money on an old failing system rather than the new one that is booming.

There has been speculation that MySpace plans to extend the iLike application into the video game industry.

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