MySpace Launching iTunes Killer

MySpace LogoA few months ago I pronounced on AllFacebook that Facebook is in the process of releasing an iTunes killer. Well months later the service hasn’t launched but Reuters has confirmed that a deal between three of the four major music labels and MySpace could be announced within days.

According to Alley Insider the various music labels will get cash payments including Universal Music Group who has received a cash payment for settling a prior lawsuit. The other music labels will also receive cash bonuses. All music will be streamed for free (ad supported) via the site but they can also be downloaded for a fee. While I think MySpace can gain a nice chunk of the online music space, they are going to need some seriously good software to generate strong revenues.

I’m a frequent iTunes customer and my primary reason for making a purchase is the insanely easy to use interface. I also use their software for managing all of my music. Prior to iTunes I had a crappy Dell application which crashed regularly so the iTunes application brought a sigh of relief for me. It will be interesting to see how this new music service is offered.