MySpace teams up with major music labels

At a time when iTunes Internet service reached the leading position in music sales, the world's largest social network MySpace creates a joint venture with the three largest recording companies to counter Apple's dominant brainchild in this market (iTunes Internet service sells more than 70% all digitized music).

Universal Music Group , Sony BMG Music Entertainment and Warner Music Group have non-controlling stakes in MySpace Music. The detailed financial terms of the big deal between MySpace and music labels were not disclosed.

The future music giant will provide users with free access to music and video clips sponsored by advertisers, as well as paid MP3 music, ringtones for mobile phones and concert tickets. The service, presumably, will be launched in three to four months.
')
Music distributed through the new Internet service will not be protected from copying, and this will allow buyers to listen to the purchased music on any players, including Apple iPod.

Forrester Research analyst James McCuivey (James McQuivey) appreciated MySpace Music, but noted that the company's activities will have little effect on Apple's position for several years, because iTunes lives on its account of the numerous owners of devices from the company who purchase music through iTunes.

via Reuters