Social networking website MySpace is close to launching an online music service that is expected to partner News Corp. with the major labels.
This could create a music site with a business model similar to that of the Fox-NBC video site Hulu.com.
Execs from MySpace are ramping up negotiations with record labels to roll out an extended MySpace music service as soon as possible, according to a report in London’s Financial Times on Monday.
Sony BMG, Warner Music and EMI are within days of signing a deal with MySpace, but the world’s biggest music group, Universal Music, is stalling because of an unresolved lawsuit with MySpace over alleged copyright infringements.
MySpace would not comment on its plans, but it is believed the website is hoping to launch its digital music library before the end of this year, with or without U.
Rival website Facebook has reportedly also begun negotiations with the major music labels as the social networking giants battle to win a share of the digital music market.
The social networking sites could use an advertising-supported business model for music rather than selling songs directly to their users. They may also include links to digital music stores, such as Apple’s iTunes or the record labels’ own online sales operations, to allow users to purchase tracks.
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