There seems to be no holding back the growth of UK-based Mindcandy‘s social game for kids, Moshi Monsters. As we’ve previously reported, this thing is a phenomenon and now it’s getting into the music business.

Moshi Monsters is launching its own record label which will release songs and videos by various characters such as ‘Dustbin Beaver’, ’49 Pence’, ‘Broccoli Spears’, ‘Hairosniff’ and ‘Avril Le Scream’.

First up for download will be ‘The Moshi Dance‘ by Lady GooGoo, which is set for release on iTunes from 18 September. This follows its success on YouTube where it’s pulled in around one million views per month over the summer.

The move is the latest expansion for what can be called a true UK startup success story. Moshi Monsters now claims over 50 million registered users worldwide, including half the children in the UK aged 6-12.

An album release is being lined up for later in the year too. Now, all together, “Let’s do the Moshi dance…”