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Jan 24 2008

Yahoo Considering Ad-Supported Online Music Service

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Rumored to be in talks with major record labels to offer DRM-free MP3s either for sale or for free using an ad-supported business model.

Yahoo Inc. is rumored to be in talks with major record labels to launch a new online music service that would offer DRM-free MP3s for free or at reduced cost using ads to subsidize the offerings.

From the AP:

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.

With the competition for digital music consumers heating up these days an ad-supported model that makes content available for free or at reduced cost will definitely set Yahoo apart from all the rest and give it at a much needed advantage.

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