MySpace to compete against iTunes in music downloads

It looks like MySpace owner, News Corp, plans to invade the music download space with a Music download service of its own.  Reuters speculates that it might just be a white box version of Amazon’s DRM-Free MP3 service (smart choice by MySpace).

Reuters points out that the venture may be more about distinguishing MySpace from up and coming rival, Facebook than actually making money.

According to Reuters:

The venture is expected to offer free, advertising supported music streamed over the Internet, as well as a store that will sell songs playable on portable devices, including Apple’s popular iPod. Creating a subscription music service as part of the offerings was another idea floated to potential partners.

The joint venture would likely involve music companies taking an unspecified equity stake in the venture in exchange for the rights for the music, with News Corp owning the biggest chunk, the source said.

Sounds complex, unweildy and ugly – something that won’t add value to Amazon’s streamlined buying experience.  But the music indstry isn’t known for their digital intelligence.