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MySpace Partners With Major Label’s To Launch New Music Service

Posted By on March 26, 2008

The New York Post is reporting that the social networking giant, MySpace.com is about to launch to a digital platform and they got some of the biggest music labels behind them. MySpace has been working on a venture with Sony BMG and Warner Music Group and is close to signing the deal as early as next week. The new music platform will combine pay-per-download with ad-supported video and audio. "The concept of the joint venture is to bring in all forms of [making money from digital music] and much more tightly integrate them," a music insider told the post. MySpace isn't doing the deal for money like most music licensing agreements, rather they are exchanging equity stakes in MySpace Music plus advertising money in New Corp (the company that owns MySpace). "Everybody's operating with a sense of urgency to try to close it out," another industry insider told the New York Post. Specializing in new music promotion and tour dates, MySpace.com's Music section alone gets over 15 million unique visitors. The label's combined stake in MySpace Music will be less than 50 percent. The service is expected to launch later this year.