Independent labels around the world have set up an agency, called Merlin, to cut deals with download sites and mobile services on their behalf.

The downloads will be sold in the MP3 format, meaning they can be played on any portable music player.

Indie labels account for 30% of revenues of global music sales and this could increase as they release 80% of new music.

Universal Music, Sony BMG, EMI and Warner Music are the four major labels. Merlin, which launched on Saturday, said it will act as the "fifth major" in the world, with a view to rectifying the "poor cousin" status of deals previously offered to independent labels.

In a statement Merlin said it aims to "improve access and level the playing field with new and emerging media".

It will allow online stores and other digital platforms to access its members’ music in one deal, rather than the thousands of separate contracts they would otherwise have to negotiate.

Source : BBC news