Vice President of Business Development for Facebook Dan Rose and his team reached out to 8 or 9 Internet music services to discuss what the service might look like. Facebook execs also met with major music labels in New York this week to discusss the project, says one source.

Based on discussions with a number of sources, that Buzznet, iLike, iMeem, LaLa, Last.fm, Rhapsody and other services were contacted.

Labels require to get a music service up and running. Some estimates of prepaid royalty requirements are as high as $100 million, which Facebook is looking to avoid paying themselves. Other sources say that Facebook may be willing to pay these fees if they can’t force the third party to take them on.

http://www.techcrunch.com/2008/10/23/facebook-dreams-of-easy-music-while-religious-battle-rages-internally/