Amazon was widely tipped to launch into the unprotected MP3 music download market this week on the back of the sudden shift in sentiment caused by the EMI and Apple move to offer DRM-free music on iTunes.
Reuters and Billboard and others reported secret talks going on this week that were unconfirmed by the online retail giant, but speculated that Amazon is going after a head on war with iTunes and is using the DRM-free content as a launch pad.
Many of the top five global record labels are reported as being in negotiations with Amazon, and will offer high fidelity 256K MP3 downloads at a premium price, in line with iTunes.
Universal Music Group is understood to be on the verge of following EMI into the unprotected music market, but will perform its own test shortly to ensure that the move won’t further damage revenues by accelerating piracy.