MySpace Nears Deal With Record Labels

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MySpace’s plan to launch a digital-music joint venture with the major record companies is picking up steam, as the social networking giant nears deals with Sony BMG and Warner Music Group, multiple sources familiar with the situation told The New York Post.


The agreements could be signed as soon as this week. The service is expected to launch later this year.


“Everybody’s operating with a sense of urgency to try to close it out,” said one industry insider close to the talks.


MySpace, News Corp. (which also owns The Post), Sony BMG, and Warner all declined to comment.


Unlike most music licensing agreements, which require upfront advances, no money is expected to change hands. Instead, the labels are trading content rights in exchange for minority equity stakes in MySpace Music and the chance to participate in the advertising revenues that News Corp. hopes to generate from the service.


MySpace attracts more than 15 million unique monthly visitors to its existing music portal, a sub-site within MySpace that specializes in new music promotion and tour date information, rather than commerce.


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