Back in May, Amazon announced an online music store selling DRM-free MP3s and today they launched a beta version:

I guess there are a few tricks left for manufacturers pursuing the micro sized MP3 player market as evidenced by the Sansa Clip pictured above. Yes, it is matchbox sized, but it also sports a a four-line color OLED screen and an iPod-like wheel for simplified navigation. The Sansa Clip will be available in September, in black, red, blue and pink and as for the other specs:
Peter Cohen at PC World reports that PayPlay.FM has joined the DRM-free MP3 market:
PayPlay.FM on Tuesday announced that it’s now selling its catalog of 1.3 million tracks of DRM-free music in MP3 format, for $0.88 each. The company said it’s offering twice the number of DRM-free tracks it pledged to offer in October, 2006 during a “Day Against DRM” event.
PayPlay.FM focuses on offering independently produced music in a variety of different genres ranging from classical to country, folk, jazz, latin, pop, rock, spoken word and more. PayPlay.FM’s library includes more than 80,000 artists.
Previously, PayPlay.FM had only offered DRM protected WMA format music files and they still do offer those at $0.77 each.