(5 April 2008 4:30 pm)

MUMBAI: News Corp.'s social networking site MySpace has signed deals with major music labels to launch internet music store MySpace Music.

The new JV between MySpace, Sony BMG Music Entertainment, Universal Music Group and Warner Music Group Partner is expected to give a tough competition to Apple's iTunes store.

Recently Apple has announced that the iTunes store has surpassed Wal-Mart to become the number one music retailer in the US.

The MySpace Music service will allow users to download songs, mobile ringtones and provide desktop wallpaper images from the popular social networking site.

The MySpace Music product will integrate new content and music capabilities across three primary areas: the MySpace Music home page, the site's more than five million artist profile pages, and individual user home pages, providing bands and fans multiple touch points to discover, share, and purchase music and merchandise in one place for the portable device of their choosing.

MySpace Music empowers bands and fans with unprecedented digital music service and e-commerce platform within MySpace that will include DRM-free digital downloads, ad-supported audio and video streaming, a mobile storefront as well as various sponsorship solutions.

For the labels' artists, the formation of MySpace Music will offer them the opportunity to provide their fans with digital downloads as well as mobile ringtones, SMS, and artist wallpapers, all directly from their artist profiles.

MySpace has more than 5 million profile pages showcasing major label artists, independents and unsigned acts. All those artists would eventually be able to take advantage of MySpace Music's offerings.

Financial terms of the partnership were not disclosed, but each of the music companies will receive an unspecified equity stake in the new company.

MySpace CEO and Co-Founder Chris DeWolfe said, "Millions of die hard music fans and artists already call MySpace Music home-by partnering with these industry leaders, our vision for MySpace Music as the definitive platform for unlimited artistic expression and unrestricted user experience is finally being realised."

"We believe that one of the greatest growth opportunities for our industry is to develop new partnerships and models focused on unlocking the value of music in the online community space. This venture may provide a defining blueprint for this next important stage in the evolution of social media, benefiting consumers, artists and music companies alike," said Warner Music Group chairman and CEO Edgar Bronfman Jr.