MySpace mulling digital music service

News Corp.-owned social networking site MySpace is reportedly in talks with major record labels to launch a digital music service that would offer both premium MP3 downloads as well as free streaming content. According to The Wall Street Journal, the tentatively-named MySpace Music would be structured as a joint venture between MySpace and its content provider partners, with the possibility of outside investors lending financial assistance. So far, MySpace has approached Universal Music Group, Warner Music Group, EMI Group and Sony BMG Music; proposals are still in the discussion stage, but MySpace is weighing a premium platform featuring downloads compatible with virtually portable device, including Apple's iPod, as well as ad-supported streaming content. A music merchandise service is also under consideration, as is a paid subscription service optimized for certain portable devices. MySpace declined comment. 

For more on MySpace Music:
- read this Wall Street Journal article

Related articles:
MySpace introduces ad-funded mobile service
T-Mobile USA befriends MySpace
Vodafone, MySpace more than just friends
Report: MySpace Mobile leads social networking pack