Report: MySpace nears deal with Sony BMG, Warner Music

MySpace.com is rolling toward closing deals with two of the four top music labels, according to a report published Monday.

Sony BMG Music Entertainment and Warner Music Group are nearing deals with the social network, The New York Post reported, citing unnamed sources.

Agreements could be signed as early as this week, according to the paper.

Last month, CNET News.com reported that MySpace was testing the music industry's interest in a service called MySpace Music, a site that would be free to users and offer music in several different ways, including ad-supported downloads and streaming to PCs, according to a source familiar with the talks.

Social networks Imeem and Last.fm already offer streaming services, and Facebook has also been talking to the top four music labels about offering songs on its site, according to reports.

Representatives from all of the companies involved declined to comment.

For MySpace, the idea is a natural, considering that the site has emerged as a showcase for up-and-coming musicians. The big question is whether the service will offer downloads, which would give it an edge over Imeem and Last.fm. Those services only allow users to hear songs on their computers.