Tech Shout!

Besides being in the news for integrating Skype into its popular social networking site, MySpace has also announced a new licensing agreement with Sony BMG Music Entertainment. This deal between the two companies will enable MySpace users to experience streaming music videos as well as select audio material from Sony BMG’s artists.

According to Chris DeWolfe, CEO and co-founder of MySpace, “MySpace has always served as a powerful promotional platform for music and we’re pleased to work with SONY BMG to take it to the next level.”

Also, under this deal, MySpace and Sony BMG will share in sponsorship and advertising revenues. This highlights the fact that both these major companies are highly committed to building new business models that benefit both artists as well as consumers.

As part of the deal, Sony BMG will license music videos, select audio material and other content from its long list of artists and will make this content available on its artists’ MySpace profile pages.

Additionally, MySpace will work alongside Sony BMG to promote the music company’s artists throughout its site, which has garnered over 70 million US users alone.

Thomas Hesse, President Global Digital Business & US Sales, Sony BMG Music Entertainment, said “We are happy to be working with MySpace as we continue to develop new approaches to doing business online. This new effort is a great way to build new audiences for our artists, bring value to fans, and offer exciting new opportunities to advertisers. We look forward to working closely with MySpace as we roll out this ambitious new project.”

As it is, MySpace already offers artists as well as labels the chance to establish and interactive dialogue with their fan base by creating profiles to connect with fans via mail and blogs, post tour dates, upload music, share promotional widgets and debut albums to MySpace.

The deal between MySpace and Sony BMG has been struck on the right note. However, financial terms of the deal have not yet been disclosed.