News Corp’s MySpace, the largest online social networking site, will unveil a music joint venture with at least three major music companies within 5 days, sources familiar with the matter said on Wednesday, Reuters reports.
Called MySpace Music, the service will be integrated with popular teen hangout MySpace.com and is being touted as a rival to Apple Inc’s (AAPL.O: Quote, Profile, Research) iTunes online music store. It will offer music streaming, MP3 downloads, concert tickets, ringtones and merchandise, the sources said.
News Corp, Sony BMG Music Entertainment, Vivendi SA’s (VIV.PA: Quote, Profile, Research) Universal Music Group and Warner Music Group Corp (WMG.N: Quote, Profile, Research) will each have a stake in the venture, the sources said. It is not clear if EMI Group, the fourth-largest music label, will be involved.
“It’s really creating a robust monetization component to MySpace and having a focused music effort that could be the MTV of a new generation,” said a music industry executive who asked not to be identified before the deal is formally announced.
