Qtrax, an ad-supported P2P service, claims it signed deals with major record labels at the Midem conference in Cannes, France.

According to Wired, the service said it would carry some 25 million songs from record labels, far more than iTunes or any other online music store.

But Warner Music, EMI, and Universal denied signing any deal despite discussions with the company, reports NEWS.com.au.

The record industry has worked with ad-supported services, such as Last.FM, before. But none have allowed files to be downloaded and played on any compatible machine.

Qtrax said it managed to convince labels and publishers to do these things after signing away "the lion's share of [ad] revenue."