We have learnt that News Corp is trying to put together a joint venture for Myspace. This joint venture will be similar to their current video joint venture with NBC Universal. In other words the joint venture will be for content providers to place their music on the service and in return gain an equity share in the company. The companies involved would only consist of the four major labels, Universal, Sony BMG, Warner and EMI.
Im guessing the music will be DRM free but will have some sort of ad support or watermarking to it. Since the Myspace deal with Snocap there has been no real use of the 7 million bands on myspace to sell some music. Im sure if this was done properly there is a chance for the service to become a real challenge to Amazon and hopefully iTunes.