MySpace paves way for music download launch

by Alex Donohue, Brand Republic 10-Mar-08, 09:00

LONDON - News Corporation-owned social networking site MySpace is understood to be close to signing agreements with Sony BMG, Warner Music and EMI about offering its users an online music download service, which could launch later this year.

According to reports, News Corp representatives have been in close discussions with three of the world's four largest record labels about providing MySpace users with music downloads.

The only major record company not currently involved in negotiations is Universal, which still has an unresolved legal dispute with MySpace about alleged copyright violations.

The three remaining labels could finalise deals with MySpace by the end of the month, paving the way for the launch of a MySpace music download portal later this year.

It is believed MySpace's new music venture would allow it to offer full track streaming of songs that can be uploaded to the website by users of social media network, imeem. In exchange, record labels will receive a percentage of ad revenues for each download.

The proposed launch of the MySpace service would significantly increase the site's competition with Facebook, which is also believed to be in talks with labels about providing a music download service.

Meanwhile, CBS's free-to-use social music website Last.FM signed content deals with Universal, EMI, Warner and BMG in January to move the site away from its ad-funded model to one generating revenue through download sales.

Last month, Play.com launched its own branded music download channel, PlayDigital, featuring digital rights management technology that allows users to share songs between iPods, MP3 players, PC and Mac formats without restriction.