The Wall Street Journal-20080124-Yahoo Is in Talks on MP3 Service
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Yahoo Is in Talks on MP3 Service
Associated Press
Yahoo Inc. is in early discussions with major record labels over offering unprotected MP3s either for sale or free as part of an ad- supported service, two record-company executives familiar with the talks said yesterday.
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 the discussions were confidential. Yahoo hopes to launch the service this year, they said.
Vivendi SA's Universal Music Group; Sony BMG Music Entertainment, a joint venture of Sony Corp. and Bertelsmann AG; Warner Music Group Corp., and EMI Group PLC, which is owned by Terra Firma Capital Partners Ltd., have in recent months begun licensing their music for sale as MP3 files online through retailers including Amazon.com.
Unlike music files that come with copy protections embedded, MP3 files are compatible with most portable music devices, including the market leader, Apple Inc.'s iPod media players; Microsoft Corp.'s Zune and mobile phones that play music.
Carrie Davis, a spokeswoman for Yahoo, Sunnyvale, Calif., said the company has often said it wants to offer music without copy protections, and the subject has been part of its continuing talks with record labels. But Ms. Davis denied that discussions with record labels on the matter have stepped up in recent weeks or that anything is imminent.
Representatives for the labels declined to comment.
Yahoo offers free streaming audio, music videos and Web radio. It also operates a music subscription service and a premium Internet radio service.
The company's management said last fall it had begun to de-emphasize its subscription model in favor of an advertising-supported music service. Yahoo also expanded it online music pages by adding song lyrics.
The Internet company recently announced plans for a multiyear restructuring plan that calls for the elimination of some of its existing areas of business.
