MSN is in talks with MySpace to bring its MySpace Music service to MSN, Kara Swisher reports. Swisher describes the talks as being “early,” but Microsoft (NSDQ: MSFT) is set to refocus MSN’s content offerings on five major areas, including entertainment, as part of an overhaul coming soon, and it might make sense for MSN to increase its music offerings at the same time. The portal has already bulked up its entertainment offerings over the last year, with the introduction of user-created fansites and the launch of an entertainment-focused version of the home page. However, in its current state, MSN’s music site features only a limited selection of tracks on its ‘Listening Booth’ page, although it does have a more extensive selection of music videos.
For MySpace, a deal would increase the reach of its music service, which new CEO Owen Van Natta has been focusing on. Just yesterday, The Telegraph reported that MySpace was in talks with Facebook to make it easier for MySpace users to share MySpace videos and music on Facebook. And while MSN might not have Facebook’s luster, its reach is the same in the U.S., according to comScore figures. Asked by The Telegraph to comment on the Facebook discussions, Van Natta emphasized that “partnerships are going to be a big part of our strategy moving forward as a lot of value can be derived from them” — something that could apply to an MSN deal as well.
Representatives at MySpace and Microsoft declined to comment about the report.
Staci adds: MySpace Music isn’t the only music service under consideration — Microsoft’s Zune is another — to fill a gap at MSN but it may be the most robust. A source familiar with the situation said it’s all at the discussion stage and nothing is close to being decided. Music is nestled within entertainment, so on its own isn’t one of those top five priorities.

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