MySpace Elbows iTunes With New Music Service

Apple’s iTunes meets its first serious challenge today with the launch of MySpace Music, CNET reports. The second-largest online social network has joined forces with Amazon and the world’s four biggest record labels to offer free streaming and paid downloads. The move also pitches media mogul and MySpace owner Rupert Murdoch against Apple CEO Steve Jobs.

MySpace Music users can search for music from the vaults of EMI, Warner, Vivendi’s Universal and Sony BMG, and can make playlists with up to 100 songs on their profile pages. Users can also listen to entire songs before purchasing. The songs will be sold in MP3 format and will play on iPods and most other devices.

(More Rupert Murdoch stories.)