NEW YORK (Reuters) - Web portal Yahoo Inc is in early discussions with major record labels to offer an online music service, the Associated Press reported.
The report, dated late Wednesday, quoted two unnamed record company executives and said details are still being negotiated and that Yahoo could offer the MP3 files either for sale or for free as part of an ad-supported service.
A Yahoo representative was not immediately available for comment.
Online retailer Amazon.com Inc launched an MP3 service last year in a bid to compete with Apple Inc’s online iTunes music store.
Amazon has signed deals with record labels EMI, Sony BMG Music Entertainment, Vivendi’s Universal Music Group and Warner Music Group Corp.
Reporting by Ritsuko Ando; Editing by David Holmes