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Yahoo Music is quite famous for its present service which includes free online audio streaming, music videos ,Web Radio. It also manages a paid music subscription and also some premium Internet Radio Service.Now Yahoo Inc. is in early talks with major record companies to offer unprotected mp3s for sale or free music which would include ads. Yahoo hopes to launch this service till end of this year .

Music Companies like Universal Music, Sony BMG, Warner Bros Music Corp., and EMI have started licensing their music for sale as MP3 files through Amazon.com giving them a little more internet penetration. If Yahoo’s service might work out, then it would give them some good penetration even in offline world. Unlike music files that come from copy protections MP3 files are compatible with portable music devices like Apple Inc.’s iPod , Microsoft Inc.’s Zune and now major mobile phones.

This would be really great for all company as well as Yahoo because past years statistics show that there has been fall in the Yahoo music subscriptions and also as everyone knows Piracy has stolen the music world. So Yahoo is more working on providing ads-supported music service rather than sale of MP3s.