MySpace ready to launch its own music download service

A social networking website, MySpace on Tuesday announced its plan to sell songs from almost 3 million unsigned bands. The online service provider said that it would start selling downloads through a partnership with Snocap, a technology company co-founded by Shawn Fanning, who launched the Napster file-sharing network in 1999.

MySpace’s idea behind the move is to provide the tool for artists to sell their music directly to members of the Web’s largest online social network, comes to give rival Apple Computer Inc.’s iTunes Music Store a run for the money.

Apple Computer Inc., which has been reining the digital music market for more than five years with its iPods and market-leading iTunes store, would definitely face tough competition, yet when MySpace launches its own download service later this year. MySpace claims more than 100 million registered members and it’s that much extensive user base is the biggest advantage in this rivalry.

Talking about company’s objective behind the initiative, MySpace co-founder Chris DeWolfe said, “The goal is to be one of the biggest digital music stores out there,” and “Everyone we’ve spoken to definitely wants an alternative to iTunes and the iPod. MySpace could be that alternative.”

A San Francisco based company, Snocap Inc. that retails digital licensing and copyright management services, would provide the technology behind the service.

Prior to the deal, MySpace was solitarily a promoter of music and artists based on the interests of the community. After association with Snocap, the site moves toward becoming a retailer, albeit one still closely tied to what its subscribers want.

The songs will be available on the band’s MySpace pages as well as on fan pages. These songs come with a non-copy-protected MP3 digital file format. Majority of digital players including Apple's market-dominating iPod will be able to play the songs, asserts MySpace. Bands would also be able to distribute the HTML code required for fans to build into their pages a digital storefront for the artists. Pricing would be set by artists, and MySpace would authorize them to collect payments through credit card or PayPal.

The bands will have total authorization when it comes to charging per song after including MySpace’s distribution fee. Snocap will be managing the e-commerce service. However, Rusty Rueff, the CEO of Snocap, says that no decision has been taken on a distribution fee, so far.

This service is expected to be broadly available by the end of the year.

Emphasizing on the company’s move, Kapur, director of business development for MySpace said, "This is just the first step," and telling about its future plans he said that the site could offer concert tickets, merchandise associated with artists and more. "This has the potential of being a very big revenue driver," Kapur added.

MySpace, started in 2004 and acquired last year by Rupert Murdoch's Fox Interactive Media Inc., has become quite popular among U.S. Web users for socializing and sharing music and photographs.