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Posted on ZDNet News: Jan 24, 2008 5:25:00 AM

Reuters Logo Web portal Yahoo 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 launched an MP3 service last year in a bid to compete with Apple'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.

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Story Copyright © 2008 Reuters Limited. All rights reserved.

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