AT&T, the US telecoms group, is in talks with record labels belonging to PolyGram, Time Warner and EMI regarding a project to deliver their music directly to consumers' personal computers over the Internet.

Bertelsmann, the German media group behind the Arista and RCA labels, has already reached agreement with AT&T. The German company is participating in a trial, whereby consumers can download a song by the Verve Pipe, a US rock group, from A2B Music, an Internet jukebox operated by AT&T. - (Financial Times Service)