facebook music It was just a few days ago that Amazon launched their DRM-Free music store which left many wondering if iTunes will be able to remain the top digital music store for long.  Now rumor has it that Facebook is in the process of putting together their own iTunes competitor. AllFacebook – the unofficial Facebook Blog is the one to report the news and says that “an extremely reliable anonymous source” provided the information. According to their source, Facebook has been working on the project since March, and they’re currently searching for a CEO to lead the new music sector.

Think about it for a minute… a digital music store on Facebook – oh the possibilities that could come from this one! Whether or not it’s true, it sounds like a great idea to me.  I don’t have statistics, but I’d be willing to guess that the average age of Facebook users is probably around 18-25, the same crowd that is likely to own some type of portable music device, and the same crowd that’s likely to purchase music online. And because Facebook already has the social thing going on, they could incorporate a “socialness” to buying music like displaying something in the mini-feed when a user has purchased a song, or showing a list of songs that a user has bought on their profile and allow their friends to listen to a clip.

A digital music store could potentially provide Facebook with a good stream of revenue if they do it right and their millions of users decide to choose the Facebook store as their source of music.  They’re in need of a way to make revenue, and this could be it. While it all sounds positive, News.com points out that starting a music business is no easy task. It would be a “massive operation for a company that has heretofore been strictly a social-networking service– even one that’s as hot as Facebook is now.”

With Amazon already labeled as an iTunes competitor and possibly Facebook appearing into the scene as well, I imagine Steve Jobs will be getting a little uncomfortable should this prove to be true…