MySpace to Launch Music Download Store

Social networking titan MySpace will launch a music download store with the participation of three of the four major music labels.

The store, which is expected to launch later this year, will carry content from Universal, Song BMG, and Warner Music. The fourth major label, EMI, is expected to join later.

Users who come to the site will be able to stream music for free or pay for downloads, a la iTunes, eMusic, and AmazonMP3. The current plan is for purchases to be one offs, but a subscription plan is reportedly under consideration. Songs will be DRM free (yay!).

The online music retail space is getting more and more crowded, with this launch and AmazonMP3's launch in the second half of 2007. Nevertheless, Apple has maintained its #1 position in the space. We'll see if that can be maintained with increasing competition from big online players.