MySpace hears the music

Everyone else is in the music download business, so why not add News Corp (NYSE: NWS)'s MySpace? The big social network is in talks with the major record labels, including Universal Music and Sony BMG. The service would offer the downloads for free and the service would be supported by advertising.

According to the FT, the deal would put MySpace in a similar position to companies like Amazon (NASDAQ: AMZN) and Wal-Mart (NYSE: WMT) that are trying to challenge Apple (NASDAQ:AAPL)'s iTunes.

While MySpace has over 100 million registered users, it is hard to see why the project will have much success. The social network is not a music download destination per se, and it is uncertain the visitors will want to use the site for a service that they are probably getting from Apple, or as they probably rip their own DVDs.

The launch is another sign that social networks do not have a model for making big money. The last News Corp estimates showed that MySpace revenue was under $700 million last year -- modest given its size.

Getting MySpace users to move to any new service may be like herding cats.

Douglas A. McIntyre is an editor at 247wallst.com.