More Music Labels May Support MP3 Downloads

A yearlong download promotion planned between Pepsi and Amazon, Billboard has learned, is among several developments forcing further consideration by Warner Music Group (WMG) and Sony BMG Music Entertainment to follow EMI and Universal Music Group's lead in distributing music in the MP3 format, which forgoes restrictive digital rights management technology.

News of the Pepsi promotion, which is expected to be announced February 3 during the Super Bowl, coincides with Wal-Mart's ultimatum that major labels supply with their music in MP3, sources said.

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Getting Wal-Mart on the non-DRM side of things is a great benefit for customers, because of their power just by sheer size and revenue. Companies don't want their merchandise to be left out of Wal-Mart stores.