WebProNews

MySpace is in discussions with major record labels to develop a new ad supported service that would allow its users to listen to music for free on their computers.

The News Corp company has been in talks with Universal Music, Sony BMG, Warner Music and EMI, according to people familiar with the situation.

If the MySpace music deal goes through it would join Amazon.com, Wal-Mart and a number of other competitors trying to capture a portion of the market share that has been largely dominated by Apple's iTunes store.

Details of the possible MySpace music venture have not been finalized, but it will likely offer free music and paid MP3 downloads, which can be played on most portable devices. MySpace executives are also considering selling items like T-shirts through the service, and offering a paid subscription service.

MySpace has already played a role in helping to popularize artists such as Lily Allen and Colbie Collet so this venture holds promise for the social networking site if the details can be worked out.

If the venture were to go forward MySpace would have to settle a lawsuit filed by Universal Music in November 2006. The record label sued MySpace over copyright infringement for allowing users to post its artists songs and videos on their profiles without permission.