Reports: MySpace Probing Label Interest in Music Service

Authored by Mark Hefflinger on February 20, 2008 - 9:10am.

Los Angeles - News Corp.'s (NYSE: NWS) MySpace has been pitching a new music service that would offer ad-supported downloads and streaming, according to published reports. PaidContent first reported news of the talks between MySpace and the four major labels, which would reportedly be offered equity in the proposed service in return for use of their copyrighted content.

The Wall Street Journal and CNET News.com also confirmed that News Corp. has approached the labels on a MySpace Music service, citing sources, but both noted that the talks are preliminary.

Neither MySpace nor any of the major labels would comment on the stories.

More than 7 million musical acts have set up profiles on MySpace.

The company already has a deal in place with Sony BMG to offer its content on the site, in return for a share of ad revenue.

MySpace is also still being sued for copyright infringement by Universal Music Group, a matter that would have to be resolved before any partnership with the label could be brokered.