There’s speculation that MySpace may develop a digital music player to take on Apple’s iPod.

But the big reveal here is that nothing is set in stone: there are no official announcements and there are no official comments from MySpace insiders in regards to developing a digital music player. In fact, it’s only speculation and a good dose imagination at play for now, however Reuters felt it necessary to post this article anyway in regards to the hopeful player.

However according to Reuters, MySpace co-founder and Chief Executive Chris DeWolfe said it was definitely "possible" that the company could eventually build a digital music player while speaking at a conference last Thursday. But for now, the online social cesspool host is focusing on its just-launched music service. Unleashed back in September, MySpace Music offers means to incorporate steaming songs into a virtual "playlist" for registered members as well as offering ways to purchase music via Amazon.com. MySpace Music also features music videos, concert tickets, ringtone downloads and more.

Despite what MySpace Music offers, the "ultimate one-stop for music fans" it is not. Clearly, the service has quite a lot of growing to do, especially for those music hunters not familiar with MySpace; it’s definitely not as general-consumer friendly as Apple’s iTunes. But having the ability to hear streaming music without spending a dime or enduring pre-song commercials could be the injection music publishers needed to rise out of the red. With declining CD sales and peer-to-peer networks leeching projected funds from the industry, anything can help at this point.

According to Reuters, people streamed more that 1 billion times in the first few days after the MySpace music launch, and that means big bucks for music labels; they could possibly rack in more than 20 million USD annually. Music labels are paid a fee every time a song is streamed, whether it’s completed from start to finish or lasting just a few short seconds; MySpace makes money through advertising and small portions of the revenue generated by actual music and ringtone sales. Currently a conglomerate of music labels has a 40 percent investment in the MySpace Music including Sony BMG, Warner music Group and Universal music Group.

But to consider MySpace as a digital music player developer seems a bit far-fetched. How could the company make any kind of profit? If anything, Google has proven that online-based organizations can reach out from within the infinite ones and zeros with its release of T-Mobile’s G1 phone embedded with the Android operating system. But if MySpace plans to tackle the mammoth Apple and its unyielding marriage of iTunes and iPod, it may be forced to consider sinking money into some type of device.

DeWolfe doesn’t seem opposed to the idea however. "If anything, we’ll be accretive to iPod sales," he said during Thursday’s conference, referring to people using MySpace Music to download music and videos for their iPods.

"Unless we develop a device," he added.

Does that mean MySpace is considering a digital music device? It’s quite possible, and the company may shed more light on the subject. Don’t be surprised to hear something new before CES 2009.