MySpace has signed a deal with two of the biggest music labels, Sony BMG and Warner Music Group. According to The New York Post, the social network site will make music downloads available to their millions of users and also offer ad supported video and audio.

What is so interesting about this deal is that MySpace isn’t asking for cash from these major records labels. Instead, the labels are trading content rights in exchange for equity stakes in MySpace Music as well as the opportunity to participate in advertising money that Rupert Murdoch’s expects to earn from this service (Rupert Murdoch is the media company that owns MySpace).

“The concept of the joint venture is to bring in all forms of making money from digital music and much more tightly integrate them,” one insider told The New York Post.

MySpace has over 15 millions hits a day on its music site.

Kanye gave a shout out to Tom (founder of MySpace) about the new venture on his blog. Check it out below.

Kanye’s Blog