New York, NY (July 28, 2008) – Fortune’s Brainstorm Tech conference provided the backdrop for MySpace’s announcement last week that their long-talked about music store will launch officially in September. The service will be a streaming service that will “enable MySpace members to listen to free streaming music as well as purchase song downloads, ringtones, T-shirts and concert tickets.” Read more from CEO Chris DeWolfe here.

Sources inside TechCrunch are reporting that Amazon will be the backbone behind the system, though nothing has been confirmed yet:

…Downloads are going to be a big part of total revenue, and while margins on music sales are low, the volume could be massive as MySpace directs its traffic to the new site. The big three music providers are likely the only partners who can handle that kind of flow. And Amazon and Rhapsody need market share to effectively compete with market leader Apple/iTunes.

Another factor in bidding is likely the ability of the partner to easily handle signed, independent and unsigned artists. MySpace has 5 million bands with a presence on the site, so the long tail is a factor.

Tags: blog, Digital, loud, mp3, Music, myspace, retail, store, stream

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