Yahoo is in early discussions with major record labels over offering unprotected MP3s either for sale or for free as part of an ad-supported service, two record company executives familiar with the talks said Wednesday.
The talks, held as recently as last month, were preliminary because Yahoo is still working out the details, said the executives, who requested anonymity because of the discussions were confidential.
Yahoo hopes to launch the service this year, they said.
Universal Music Group, Sony BMG Music Entertainment, Warner Music Group Corp., and EMI Group PLC have in recent months begun licensing their music for sale as MP3 files online through retailers like Amazon.com.
Representatives for the labels declined to comment.
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