MySpace and three major record labels -- Warner, Universal and Sony BMG -- have confirmed earlier reports by announcing the creation of MySpace Music, a new online store. Visitors will have at least two options in visiting: streaming music for free, with the costs covered by advertising, or paid downloads, making MySpace the latest rival to outlets such as Amazon or Apple's iTunes Store. Also possible may be some form of subscription service, but this is still under consideration. No launch date has been announced.

Under the terms of the deal, each of the record labels will have a minority stake in the site, and will be able to sell additional items like tickets, T-shirts, ringtones and other products that exploit the captive audience. Tracks will be sold DRM-free, and include all of each label's catalog; notably absent from the deal is EMI, but people involved in negotiations expect it to join the website's development shortly. [via The New York Times]