MySpace has about 200 million registered users
Networking site MySpace is to launch an online music service in partnership with three major music companies.
The new service MySpace Music is being launched with Universal Music, Sony BMG Music and Warner Music.
Users of the new service will be able to listen to music and watch music videos free of charge, while paying a fee to download music.
The website will also make money from advertising and selling merchandise like ring tones and concert tickets.
However, the exact terms of the deal were not disclosed.
The one major record firm excluded from the partnership was EMI.
The new music service is seen as a possible competitor to Apple iTunes Music Store, which has dominated the digital music market.
The music industry has been concerned about a lack of competition for iTunes in the digital music market.
Music firms see a new entrant in the music download market as a positive change.
"This gives a great new lease of life for the download market," said Thomas Hesse, Sony BMG president of global digital business.