London-based 7digital became the first digital media site to offer catalogs of unrestricted music from all four of the big music publishers. This is seen as a major coup and throws down a challenge to Apple's iTunes Music Store which is still bound by digital rights management deals.

CEO Steve Jobs has let it be known that he wants iTunes to drop the cumbersome DRM restrictions preventing customers from transferring music to multiple devices. Apple has signed DRM free deals with EMI and a bunch of smaller Indie lables.

The big record labels have been reluctant to drop the DRM, but with declining CD sales and an ever increasing number of frustrated music lovers turning to pirate download sites, they have had little choice.

7digital is the first European service to sign a deal with Sony BMG, home to Bob Dylan, Kings of Leon and Glasvegas. This comes on the back of signing an agreement for the complete catalog of Warner Music's Mp3 assets in March this year. The deal with Sony BMG now puts the 7digital vatalog at over 4 million songs the vast majority free of DRM restrictions.

7digital, which is privately held, was co-founded by Ben Dury and James Kane in London in 2004. The company is backed by the European arm of Benchmark Capital awho were one of the investment groups that kick started eBay. In January 2008 7digital received $8.5 million in funding from from various groups, including Sutton Place Managers and Balderton Capital. The capital is being used to expand 7digital into markets around the world.

Yesterday the company opened regional download sites targeting Italy, Austria and Portugal adding to its existing UK, Irish, French, German, Spanish markets.

CEO Dury has promised a 7digital Mp3 only store in the US and Canada by the end of the year.