MySpace to open music store while Yahoo shuts down

MySpace the Social networking site with over 110 million active global monthly users will launch a new music service in September. According to an announcement and in a susbsequent interview a top executive revealed that MySpace members get to listen to free streaming music as well as purchase song downloads, ringtones, T-shirts and concert tickets as early as september 2008.

MySpace was acquired by News Corp. and became a platform for music bands to connect with their fans early on, and the company says that 65% of their members currently embed music on their profile pages. MySpace is hoping that the new services will stimulate growth which has been slow in comparison to Facebook, a rivaling social network that continues to grow by leaps and bounds..

“MySpace is more about self expression and individuality,” DeWolfe, the MySPace CEO said when asked for his thoughts on Palo Alto-based Facebook. “One of the reasons why we’re investing so heavily in music is that self-expression and music go together so well.”

While Yahoo is dropping its music store [1] more social networks like MySpace are trying to come up with ways to make money off the digital music industry. Apple’s iTunes is the leader in the digital music sales arena and will be bolstering their offering by adding links to the popular Guitar Hero video game. Activision Blizzard, the games publisher will soon start selling songs tracks via an iTunes-like music store.