MySpace will launch its own MySpace Music store, which was originally planned to launch on Monday, later this week.  The new MySpace store has the support of Sony BMG, Universal, Warner Music Group, and other record labels are expected to enter the mix.

Unlike Apple iTunes, Amazon, and other popular music vendors today, MySpace Music's design allows all purchased music to be shared through MySpace pages and other playlists.  MySpace has more than 120 million users and at least 5 million bands promote their music through the site, yet iTunes remains the dominant online music store.  MySpace Music will offer free streaming music that can be added to playlists and embedded into profiles, while unprotected MP3 downloads will also be available.

In addition to music downloads, MySpace hopes to cash in by helping sell concert tickets, cell phone ringtones, t-shirts and DVDs, and other merchandise offered by bands.

MySpace Music will launch with McDonald's, State Farm, Toyota and Sony Pictures serving as the first four major advertisers, with other announcements expected after the service launches.  Each company will have ads integrated into the site, but their participation will be more than simple banner ads, though MySpace did not go into details.

The popular social networking web site is looking to acquire "well over $100 million" in private equity funding, but has not announced any specific investors.  Providence Equity Partners, who invested $100 million into Hulu, is one company rumored to be interested in investing in MySpace Music.

Early critics said the new service will be too dependent on the major record labels for assistance, and the lack of indie label support will not help offer a wide enough music catalog to possible consumers.  But Jeff Berman, MySpace president of sales and marketing, said the company is interested in working with indie labels, and will begin to do so label-by-label.

 Much work must happen before the service is able to begin chipping away at Apple's music market lead, such as the hunt for a chief executive.  Two candidates, Owen Van Natta, former Facebook executive, and Andy Schuon, a former Universal Music Group executive, are said to be the two serious candidates for the MySpace Music CEO position.

Pricing for the service has not been announced, but is expected to be competitive with iTunes and Amazon.