A Tipping Point For MP3s

From Ed Christman, Billboard:

The scope of 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.

News of the Pepsi promotion, which is expected to be announced Feb. 3 during the Super Bowl, coincides with an ultimatum from Wal-Mart asking major labels to supply walmart.com with their music in MP3, sources say. Labels, meanwhile, say they have been watching the success of an MP3 test UMG began in August; the major continues to allow the sale of 85% of its current catalog as MP3s. Sources say UMG is on the verge of permanently embracing that digital format. But a source close to the testing insists the decision is still up in the air while the company awaits conclusive results from the trial, which are due in mid-January.

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