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MySpace To Start Selling Music Downloads in MP3 Format; May Take Stake In Snocap

This is possibly be the worst time to get a story out (c’mon guys…give us some rest, will ya): MySpace is going to allows the bands (3 million of them) on its site to sell music downloads. It will start before the end of this year.
Songs can be sold on the bands’ MySpace pages and on fan pages, in MP3 format, which means they will also work on iPods. The bands will decide how much to charge per song after including MySpace’s distribution fee.
MySpace co-founder Chris DeWolfe said that MySpace would be “enhancing and customizing” its online music store as the service evolves, aiming to eventually offer copyright-protected songs from major record companies. For now, MySpace is in talks with EMI, the story says, though no decision has been made.
MySpace is using technology from Snocap, the digital music tech company founded by Napster founder Shawn Fanning. It is also working with eBay’s PayPal for the site’s online payment system.
For Snocap, this mean some traction, after all these years of toiling and hoping that the labels and music services will adopt its digital fingerprinting and filtering technologies. It recently retooled the company’s services and launched a tool that allowed musicians to sell music directly from their own sites, using MP3 format and Paypal. Some of the bands are already using the service to sell music on MySpace…here’s an example (check the left column), and here’s the description on Snocap’s own site.
WSJ: News Corp. could end up with a minority position in Snocap…it got a $15 million third round funding in March.
FT: Though they will be able to set their own price, MySpace will establish a minimum figure to cover the costs of running the service, with any money above that divided between the site and the artists.