Apple is rumoured to be in talks with three of the four major music labels about offering DRM-free tracks on its iTunes music service.
Citing "two music industry sources", CNET says Apple is in preliminary talks with Universal, Warner and Sony BMG, with one label in particular leaning towards an agreement. The tracks would reportedly be in AAC, a format designed to succeed MP3. However, CNET does not name its sources and Apple as well as the music labels have so far declined to comment.
The fourth major label - EMI - already offers its catalogue on iTunes free of copy protection measures in the AAC format.
Rumours about discussions between Sony and Apple began to circulate earlier this month, when the 9to5Mac blog said Sony would begin offering its music catalogue in a DRM-free format as part of the iTunes Plus Service. The CNET sources neither confirmed nor denied this story.
If the firms do come to an agreement, iTune users would be able to download tracks onto any portable music device, not only the iPhone and iPod.
The deal would signify a u-turn on the part of the music labels, which have so far refused to offer DRM-free tracks on iTunes because of Apple's powerful position in the market. In contrast, all four labels offer copyright-free songs on Amazon's music service.
An agreement would come as a blow to Amazon, which values its DRM-free catalogue as a powerful tool against Apple's ubiquity in the market. According to Ipsos, iTunes has a 57% share of the US market, while Amazon has only 9%, despite being the second-most popular music service in the country.
Meanwhile, Microsoft is offering 10 free MP3 tracks per month in a revamp of its Zune music subscription service.
StrategyEye's related companies: EMI Group, Universal Music Group, Sony BMG, Warner Music Group, Apple, Inc., Amazon.com, Microsoft
