Apr 9, 2008 3:10 PM

MySpace, Sony BMG Music Entertainment, Universal Music Group and Warner Music Group have formed a new company, MySpace Music, as a landmark joint venture. The financial terms of the partnership were not disclosed. MySpace is a unit of Fox Interactive Media Inc.

MySpace Music will feature the network’s first integrated e-commerce solution by adding commerce and music management tools. The new product will roll out iteratively in the coming months.

The MySpace Music product will integrate new content and music capabilities across three primary areas: the MySpace Music home page, the site’s more than 5 million artist profile pages, and individual user home pages. MySpace Music will include DRM-free digital downloads, ad-supported audio and video streaming, a mobile storefront (powered by News Corporation’s Jamba mobile company) and various sponsorship solutions.

Users will be able to download, stream and personalize music content by creating playlists and having access to enhanced purchase opportunities and search functionality.

The labels’ artists will be able to provide fans with digital downloads as well as mobile ringtones, SMS and artist wallpapers directly from their artist profiles. Additionally, artists will be able to sell digital content and physical goods such as T-shirts and concert tickets.

The new company will launch with nearly 30 million unique monthly visitors for the Music channel and its more than 5 million artists. Additionally, MySpace Music has the participation of millions of major, indie and unsigned artists via their music profiles and interaction with the MySpace community.

The new MySpace Music library will enhance existing MySpace Music franchises including Secret Shows, MySpaceLIVE!, Transmissions and The List.

The new company will be based in Los Angeles and have a dedicated executive management team to oversee the business. In the coming months, MySpace Music will begin to roll out new content and product functionality within the existing music channel.

“We’re committed to pioneering innovative and satisfying ways for consumers to experience music and video and MySpace Music will deliver on that promise,” says Peter Chernin, president and Chief Operating Officer of News Corporation. “The music industry is alive and kicking—we’re thrilled to play a leading role in its future.”

“Today represents the beginning of a new chapter in the story of modern music—we’re proud to announce the marriage of the world’s biggest collection of music content to the world’s most popular music community,” says Chris DeWolfe, CEO and co-founder of MySpace. “Millions of die-hard music fans and artists already call MySpace Music home—by partnering with these industry leaders, our vision for MySpace Music as the definitive platform for unlimited artistic expression and unrestricted user experience is finally being realized.”

For more information, visit www.music.myspace.com.