Details emerged this evening on the MySpace music service that News Corp is pitching to labels (and reportedly offering labels equity in the new company). Greg Sandoval at CNET NewsBlog posted information obtained from two sources. According to Sandoval, ad-supported music would be available as both downloads and streams, and News Corp brought up the possibility of adding "Buy Now" buttons.

The Financial Times also weighed in on News Corp's plan for a MySpace ad-supported music service. The wording ("would allow consumers to listen to music for free on their computers") hints that the service will not offer downloads, but no more details are offered. Just the fact that the Financial Times would write about the proposed service is the most important aspect of the article.

After the flat launch of ad-supported site SpiralFrog and the embarrassing and incomplete launch of ad-supported P2P service Qtrax, it's obvious a major player needs to step in and put together a service that can win over consumers. The labels need a company like News Corp and News Corp, as MySpace digs in for a fight against Facebook, needs record labels' involvement. Good timing.