The Wall Street Journal is reporting that social networking giant MySpace is in the process of partnering with the Big Four music groups to become an online music destination.

It's reportedly part of a larger effort to position MySpace more of a media company, and further distinguish itself from Facebook.

Tentatively dubbed MySpace Music, the music service would let users listen to free, streaming music, and purchase DRM-free MP3 downloads, which can be played on virtually any portable device, including the iPod.

The streaming service would be advertising supported and revenue would be split with the labels.

[Wall Street Journal]
Photo courtesy of Robert Scoble.

Yahoo may be fending off "bearhugs" from Microsoft, but it's their music biz that's getting the axe in the shortterm. The company announced today that it will discontinue its Yahoo Music Unlimited subscription service and will transfer its customer base to RealNetworks' Rhapsody service.

The process is expected to begin mid-2008, when subscribers will be guided through migrating their current libraries over to Rhapsody's system. Eventually (though we don't know when) subscribers will be expected to, ahem, "upgrade" to Rhapsody's pricing plans.

Only problem is, Yahoo's rates range from $5.99/month (full year pre-pay) to $8.99/month and Rhapsody memberships start at $12.99/month.

Yahoo will integrate Rhapsody into their music portal, and the two also intend to collaborate on other digital music services such as music downloads.

[CNET]