Facebook in deals for a digital media store

Facebook in deals for a digital media store

No one is surprised to hear the rumors that Facebook is now considering getting into digital music market.

Rival MySpace has already launched their MySpace Music service.

Market sources are saying that Facebook is in talks with various players in this segment including Rhapsody.com, iMeem.com, iLike.com and Lala.com.

In addition, they are also likely to be talking directly with the major music labels for this service.

Phil Leigh, senior analyst at Inside Digital Media spoke about Facebook’s potential entry in this market which is already cluttered with major players including Apple and Amazon: “Facebook is a serious challenger to MySpace and they would certainly want to do anything that record labels would allow them to do with advertising-supported music. Advertising-supported revenue would be good for Facebook and certainly free access to recorded music would be good for Facebook members. It would be good for the labels, too. If the MySpace deal is working out well, then the labels would probably want to replicate that on Facebook.”