MySpace is getting into the music business. They announced today that they will allow nearly 3 million unsigned bands to sell their music directly to Myspace users. Snocap will provide the back end technology for the service. The agreement also includes performance-based warrants to purchase stock in SnoCap. The music will be sold in MP3 format without copy protection of any kind. This comes as major labels such as Universal Music Group are starting to experiment with free music downloads, albeit with copy protection.

It’s unclear whether Myspace will also offer music from major labels pursuant to the deal. The agreement does not prohibit these sales, and Snocap has deals with most major labels. Downloads of music from labels would require copy protection pursuant to Snocap’s existing deals. Look for additional deals from Myspace as they continue to develop their overall music (and revenue) strategy.