Looking to compete with digital services like iTunes and Amazon — as well as fend off Facebook’s increasing popularity — MySpace announced today that it has deals in place with Sony BMG, Universal and Warner to create MySpace Music, a digital music service that will sell downloads, stream ad-supported music and videos and serve as a storefront to physical goods and concert tickets. The move is in response to Facebook’s hookup with iTunes via the iLike feature, allowing users to purchase and stream music, post play lists and update concert information. By striking deals with three of the four major labels (only EMI has not signed on), MySpace Music boasts “the most comprehensive catalogue of music content available online.” The service anticipates launching “in the coming months.”

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