Focusing on the fan experience is good (and necessary), but Facebook will only win if its the first place that artists and labels login everyday (currently myspace). They need more than music discovery tools and playlists for fans. Every artist can't be driven to the top by discovery. That would mean increasing the size of the music listening pie. But they can help cultivate the millions of niche followings if they put power into the hands of the artists themselves. Give the artists the tools to carve out their own slice. Then they would be embracing millions of artists to drive people to facebook, instead of hundreds of major label acts. Dare I say this would be a repeat of MySpace's original strategy (that worked quite well)?

You comments about the tangle of rights holders are spot on. Good luck negotiating with the majors without giving away the company to the labels, or not getting 100% participation. Others have tried…..