MySpace has launched its MySpace Music initiative. The service, which debuted last night, promises to allow users to stream virtually any song ever published for free. You can can also create playlists that contain up to 100 songs and share them with others. Any song can also be downloaded MP3 format via from Amazon's music download service.

The entire system is ad-supported, with labels receiving a per-play licensing charge. At the same time, all the major labels - as well as indie distributor The Orchard, own part of the business. No other indies were given equity in the new company, according to reports.

The service has the potential to dramatically change music online, considering that entire label catalogues will now become free for streaming, on-demand and via playlists. It is interesting that the news comes just weeks after MuxTape was shut down by the major labels (through the RIAA) for offering a similar service.

Americans can try out the system here.