MySpace Reaches Out

"I'd rather them not try to nickel and dime the site," says Darren Chervitz of Jacob Asset Management, which owns News Corp. shares. "If there is a way for MySpace to generate additional revenue without alienating its user base, I as a News Corp. shareholder would love to see that."

Investors likely will give News Corp. time to work on the project, being that its shares are up 18% this year. It easily has outperformed big media rivals Time Warner (TWX Quote) and Viacom(VIA Quote), which both have fallen 8%.

News Corp. also has outshined big-cap Internet stocks, including Google, Yahoo!(YHOO Quote) and Amazon.com(AMZN Quote).

"It is, of course, a fine line," says Lanctot, who does business with MySpace, of the plan to pursue ad dollars. "Do you charge an established record company, but not an indie band? How about an independent label?"