Amazon May Sell Non-DRM MP3s

An agent for dozens of musicians including Taylor Dane, Led Zeppelin and John Sebastian says Amazon's music download store is set to launch by April 1. Bruce Houghton said is will sell MP3 tracks without Digital Rights Management protection.

"By embracing mp3's, Amazon (AMZN) completely avoids all player compatibility issues by selling in the only format that plays on all devices including the ubiquitous iPod," Houghton wrote at Hypebot. He said Amazon has been distributing negotiating with music labels to participate in the new venture, offering an incentive something iTunes does not - variable pricing on tracks.

Houghton said it's not clear whether major labels will participate, but he expects most independent labels to jump on board.

Will the majors dance to Amazon's new tune? Not likely. Yahoo's (YHOO) tried it, and gotten a few artists like Norah Jones and Relient K to sell MP3 tracks through its store, but it looks more like a stunt than a test.