MySpace Music considers subscription model

MySpace Music, that long slumbering music unit of the struggling social network, is considering whether to begin charging users, according to a source close to the negotiations.

The source said Wednesday that MySpace Music execs have spoken to some of the top labels about creating a subscription service. This apparently confirms a report published Tuesday by the Web site of Side-Line, a music magazine. Citing sources close to News Corp., parent company of MySpace, the publication said it wants to move MySpace Music to a paid model and that it's burning through a lot of money each month.

MySpace Music is a joint venture operated by News Corp. and each of the top four major labels.That MySpace is considering a move to a paid model isn't a surprise. First, MySpace Music has underachieved in terms of generating revenue, multiple music industry sources said. "Numbers have been dipping of late," said a music industry source. Meanwhile, News Corp. Chairman Rupert Murdoch has been a vocal proponent of charging for online content, at least for some of his company's digital ventures, including video portal Hulu and the online arm of The Wall Street Journal.

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