Yahoo! Music could shift model to unprotected, ad-supported

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Yahoo! Music could shift model to unprotected, ad-supported

Posted on: 01/25/2008

From USA Today: 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… Unlike music files that come with copy protections embedded, MP3 files are compatible with most portable music devices, including Apple’s market-leading iPod media players, Microsoft’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… 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.

Read the entire story from USA Today.



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