The search for MySpace Music CEO just got a bit more competitive: The longtime CEO of online music service eMusic David Pakman is leaving, and joining an as-yet-un-named venture capital firm as a partner. The music company, owned by Dimensional Associates, the private equity arm of JDS Capital Management, has retained a search firm to find a new CEO. Likely candidates would probably include some of the names MySpace has looked at over this year as the CEO of its newly launched music service.

Pakman will remain with the company through the end of this year and will remain on company’s board, and as an advisor. Pakman joined eMusic as COO in 2004 and was elevated to CEO in August 2005. eMusic has positioned itself over the years as an MP3 and indie-focused music service, and says it has bout 400K subscribers. The company has about $70 million in yearly revenues, it disclosed in the release…this is the first time it disclosed its revenues, likely to attract a big-name candidate who can scale the business.

• @ Needham Digital Media Con: Interview: David Pakman, CEO, eMusic: ‘Adults Still Buy Music’