Yahoo looks to launch free MP3 download service

Yahoo Inc., is continuing discussions with major record labels over offering unprotected MP3s either for sale or for free as part of an ad-supported service, and hopes to launch the service this year, 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.

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.

Unlike music files that come with copy protections embedded, MP3 files are compatible with most portable music devices, including Apple Inc.'s market-leading iPod media players, Microsoft Corp.'s Zune and mobile phones that play music.

Carrie Davis, a spokeswoman for Sunnyvale, Calif.-based Yahoo, said the company has often said it wants to offer music without copy protections and the subject has been part of its ongoing talks with record labels.

But 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.