Following the lead of major label rival EMI, Universal Music is set to start offering DRM-free downloads through a variety of online retailers - but apparently not through iTunes. The New York Times has reported that Universal will be the second major label to try out DRM-free music, through a trial that will see its unencumbered tracks available through retailers such as Google Music, Wal-Mart, Real Networks and Amazon.

It's reported that Universal is saying that the DRM-free sales will be on a trial period up until the first quarter of 2008, however it is not clear if Universal will follow the lead of EMI and place the DRM-free downloads in the market at a higher price-point than its other DRM encumbered tracks.

The move also seems designed to continue to place pressure on Apple's in the ongoing dispute between Universal and Apple over royalties from iTunes and iPods. Back in June Universal told Apple that it wouldn't renew its agreement with iTunes to sell music through the online store for another year and would sell at will, allowing the major to potentially pull out of iTunes at any time. The DRM-free announcement seems designed to turn up the heat on Apple to reach a settlement on royalties.

The news is particularly good for Amazon who announced in April that it was going to launch a DRM-free record store, but with only EMI's DRM-free content to work with to date, the online mega-retailer was looking like it was going to enter the digital music space with a pretty mediocre offering. The news is also great for consumers, by leaving iTunes out of the loop for the minute, competitors to the dominant service may get a chance to catch up on a small piece of the market, thus increasing competition and hopefully providing more options for the digital music buying public.

[Via the New York Times]

Amazon.com has announced that it's going to head deep into the jungle of digital music sales - and will only be selling DRM-free MP3 tracks. Amazon founder Jeff Bezos announced the plans to launch the DRM-free store later in the year in a joint announcement with EMI, who are the first major label to release DRM-free tracks.

At the present time having a DRM-free strategy will mean that Amazon will only be able to release tracks from EMI and Independent labels, restricting the available offering for their store. However, the announcement of a DRM-free strategy from the giant of online retailing will place further pressure on the rest of the major labels to look into releasing DRM-free tracks and will give Amazon the time to enter into what will be no doubt very arduous negotiations with those labels.

Amazon is pursuing a clever strategy by announcing the DRM-free store: in an industry dominated by Apple's iTunes Amazon will need to distinguish itself against its competitors. Amazon, without the benefit of a digital music player to back up its music store offering will be keenly aware that the DRM-free strategy will open up its store to every music players in the market, as Bezos was at pains to point out at the announcement:

"Our MP3-only strategy means all the music that customers buy on Amazon is always DRM-free and plays on any device," Bezos noted "we're excited to have EMI joining us in this effort and look forward to offering our customers MP3s from amazing artists like Coldplay, Norah Jones and Joss Stone."

Even for an e-tailer of its size Amazon will have its work cut out to challenge the power of iTunes, but a DRM-free policy is certainly a very very good way to start.