|
LOS
ANGELES -- News Corp. has approached the four major
record labels to discuss launching an online music
service through its popular MySpace social networking
site, music company executives familiar with the talks
say.
The
media conglomerate envisions a one-stop music service
that offers content in various ways, including via free
digital streams, as MP3 downloads and through a
subscription plan, one of the executives said.
News
Corp. proposed launching the service as a joint venture
with the major recording companies, which would receive
an equity stake in the new company, the executive said.
The
music company executives spoke on condition of
anonymity, saying they were not authorized to discuss
the matter publicly.
News
Corp. and MySpace declined to comment Wednesday.
Representatives for the recording companies - Vivendi
SA's Universal Music Group, Sony BMG Music
Entertainment, Warner Music Group Corp. and EMI Group
PLC - declined to comment.
MySpace has been a popular music hub for years,
prompting established acts and unknown bands alike to
create profile pages that often let visitors stream a
few songs. Bands on MySpace also can sell downloads of
original music directly through their profile pages.
The
company may be looking for ways to maintain its lead on
rival social network Facebook, which has been gaining in
popularity.
With
sales of CDs in a protracted decline, recording
companies have licensed their content for sale as
unprotected MP3s and for free streaming on ad-supported
sites such as imeem.com and Last.fm.
News
Corp. faces a potential deal hurdle with Universal, the
largest of the recording companies.
Universal sued MySpace in 2006, claiming the portal
illegally encourages its users to share music and music
videos on the site without permission. That lawsuit is
still pending.
Sony
BMG is a joint venture of Sony Corp. and Bertelsmann AG.
--AP |
