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Report: Yahoo! to Launch Online Music Service

Date: 01-29-2008

Yahoo! Inc. plans to launch a new online music service this year, according to two anonymous record label executives who spoke to the Associated Press. Yahoo! is in preliminary talks with the major music record labels about offering unprotected MP3s free or for sale in an ad-supported service, according to reports. All of the four top music labels — Universal Music Group, Sony BMG Music Entertainment, Warner Music Group Corp., and EMI Group — are now offering at least some of their catalogs in the MP3 format. Amazon MP3 is the only online retailer that offers DRM-free MP3s from all these labels. Last year, Yahoo! signed a licensing deal with Sony BMG for user-created video content where the latter was to receive a share of advertising revenue.


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