It remains to be seen whether people who gather to share their love of music in communities such as MySpace can be convinced to pay for it, Garland said. MySpace executives approached the music labels about a possible joint venture several months ago, talking about how to capitalise on its already strong music platform, which attracted about 68 million people in February, according to online measurement firm ComScore Media Metrix. The site also hired Fred Davis, founding partner of the Beverly Hills, Calif, law firm of Davis, Shapiro, Lewit & Hayes, to represent it in negotiations with the music companies.

“In many ways, it is an unprecedented foray into music on the Web,” said one person familiar with the deal. “Now, you have music discovery happening in some places, and music consumption happening somewhere else, and the non-recording aspects of music, such as ticket purchases and merchandising, happening even elsewhere. MySpace Music is going to aggregate all those disparate activities.”

MySpace Music would combine free and paid services. Music streams and music videos would be free to users, but carry advertising. Downloads, ringtones and ring-back tones would be sold.

One obstacle to the deal has been a 2006 copyright lawsuit filed by Universal Music against MySpace, which it described as a “vast virtual warehouse” of pirated works from some of the company’s best-known artists, including Mariah Carey, Diana Krall and U2. A Universal Music spokesman declined to comment on the status of the suit.