Dance Dance Revolution, Guitar Hero, and Rock Band have become increasingly popular over the years. But why? These players probably can’t play guitar. Most probably can’t dance. And it is rather doubtful that a random group of people could form any sort of band. However, with each step in their evolution the potential for social music games has become increasingly clear.

While not quite the same as “rocking out” with your friends in person, many of these concepts have been loosely translated into a new social music site Loudcrowd, whose public beta was recently announced by Conduit Labs. The site is meant to be a place where anyone can log on, create a custom cartoon avatar, and listen to original music (sort of like a radio) within a social space.

Currently, the site is still small, with only two games available (with more planned for the future).

The first game is dubbed “Dance.” Using a Guitar Hero‘ish style, players earn points by dancing in either a flirty, flashy, or funny style, and use those points to purchase music, games, and clothes for their avatar. You are free to join and dance with others on the dance floor and visa-versa.

The second available game is entitled “Spin” and puts the player in the role of the club DJ, attempting to capture gems from the spinning turntable. What is interesting with this game, however, is that after you challenge your friends for a high score, you win the ability to actually host parties and share music with your guests.

The site currently has over 50 decent artists and 250+ songs available for sharing. They are primarily new artists, but good music is good music. Currently, the company has partnerships with indie music labels such as DFA, Downtown Records, and Domino, with more on the way.

So far, Loudcrowd has raised $5.5 million from Charles River Ventures and Prism VentureWorks. Should Loudcrowd succeed with fun, social games, players will come, and if the players come, so will the music industry.