Los Angeles - Yahoo (NASD: YHOO) is in early talks with the major record labels on launching an online music service that will offer songs as unprotected MP3s, either for sale or in an ad-supported model, the Associated Press reported, citing record company executives familiar with the matter. The company hopes to offer such a service later this year.

All four major labels are now offering at least some of their catalogs in the MP3 format; Amazon MP3 is the only online retailer so far to begin selling MP3s from all the majors.

Yahoo spokeswoman Carrie Davis told AP that the company wants to distribute MP3s, and this has come up in discussions with labels, but maintained that talks are still ongoing, and no deal is imminent.

Related Links:
http://snipurl.com/1y6hb (AP)

http://music.yahoo.com