Fiat Sponsors MySpace Music Launch in U.K.

News Corp.’s long-awaited MySpace Music service launched in the U.K. today, offering access to on-demand, ad-funded music from the nation’s major labels. The service, which launched in the U.S. in September 2008, will go head-to-head with existing ad-funded music sites such as We7, and popular client-based streaming service Spotify, for both ad dollars and user attention.

MySpace declined to comment on exactly what type of sponsorship opportunities would be available through the service, but at present ad offerings appear to be limited to display formats, as opposed to the in-stream audio ads currently offered by Spotify and We7.

Automotive manufacturer Fiat is the launch sponsor, taking over the “featured playlist” section of the site, which includes, bizarrely, a list created by the Vatican, alongside those by other celebrities and artists such as Muse and Editors. To promote its Punto Evo model, Fiat is also encouraging users to add tracks to its own “music evolution” playlist, in order to be entered into various prize drawings.

MySpace aims to “build a sustainable business for MySpace Music, content licensors and artists, while serving fans in a completely unique way.” Commenting on the launch,” noted Courtney Holt, MySpace Music president. Spotify itself has stated that its ad-supported product alone is not enough to sustain its business model, and that it expects users to pay for premium features such as mobile access to make ends meet.

Fans looking to own the music they stream, for use on mp3 players and iPods, for example, will be directed to iTunes to purchase DRM-free MP3 tracks. Artists will also be given access to demographic and social data and analytics tools offering them insights into their fans, and how they engage with their music and video content.

Writing on a MySpace blog yesterday, Holt emphasized MySpace Music as a media platform which should offer a “360-degree approach to enjoying music,” rather than simply a music streaming service. She added the company is “extremely focused on evolving a next-generation platform that serves the needs and business goals of all key constituents.”