The major record companies have finally done something smart on the digital music front. They hooked up with MySpace to launch a new online service that gives users all sorts of choices about how they listen to and download music.

According to a New York Times report:

Visitors to the site will be able to listen to free streaming music, paid for with advertising, and share customized playlists with their friends. They will also be able to download tracks to play on their mobile devices, putting the new site in competition with similar services like Apple, Amazon and eMusic.

They're also considering adding a subscription option.

MySpace is contributing its MySpace Music service as the heart of the as-yet-unnamed venture. The labels will each have a minority stake and make their full catalogs available to the new service. So far only Universal, Sony BMG and Warner Music have signed on. EMI, the most digital-friendly of the Big Four, is expected to follow suit fairly soon.