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April, 3nd 2008

MySpace, Sony BMG Music Entertainment, Universal Music Group, and Warner Music Group Thursday (April 3) formally announced the much-rumored formation of a new joint venture, MySpace Music. The company marries the MySpace music community with the catalogue of music content of the three labels. The financial terms of the partnership were not disclosed.

The service will be a one-stop destination for all things music, including DRM-free full-song downloads, ad-supported free full-song streaming, concert tickets, merchandise and ringtones. There may even be a mobile storefront that will include some or all of these services as well.

EMI Music Group is also onboard, having finalized licensing deals as late as Wednesday night (April 2). EMI is expected to come to an agreement soon. Its absence is blamed primarily on the changing management structure of the company. EMI just Wednesday named a new digital business president, who will start April 28.

“Today represents the beginning of a new chapter in the story of modern music--we’re proud to announce the marriage of the world’s biggest collection of music content to the world’s most popular music community. 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 realized,” said Chris DeWolfe, CEO and founder of MySpace.

The new company will be based in Los Angeles and will have a dedicated executive management team.

-Mike Boyle

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source: Radio and Records
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