MUMBAI: News Corp's social networking site MySpace is drawing up plans to create a new ad funded service that would allow consumer to listen to music for free on their PCs.

MySpace has reportedly been in discussions with Universal Music, Sony BMG, Warner Music and EMI to create an online music joint venture. A point that needs noting though, is that there is currently a copyright dispute between MySpace and Universal Music, which could act as a hurdle for the joint venture.Universal has filed a lawsuit against Myspace charging the site of encouraging users to share music and music videos illegally.

Tentatively dubbed MySpace Music, the service would let MySpace users play music on their computers while logged onto the site. They would also be able to buy and download tracks free of copyright protection.

If successful, the move would rival Apple's iTunes store, which currently dominates the market. Unlike iTunes, the users would be able to stream songs for free throughout the site as it will be built around online advertising, sold depending on the traffic to a certain page.