The new music downloads kid on the block is We7. We7 is musician Peter Gabriel’s Internet venture offering ad-supported free music, either streamed directly from the site or downloaded to you computer. The downloads are DRM-free and can be transferred to any Mp3 player or CD of your choice. A good service? So far I definitely will not complain, and I’ve been using it almost from its inception in May of 2007.

The greatest news for We7 thus far is that Sony BMG has agreed to offer its entire back catalogue for streaming from their site. For free. Wow. Music downloads and all those associated with them have scored a home run here.

Sony BMG has a history of opposing free music downloads, not of endorsing and even actively helping them, and this move signals a significant shift in the thinking of at least one of the biggest industry giants.

Whether Sony’s move will trigger a watershed of action from the other big publishers will remain to be seen but it is difficult to see them competing successfully against free music downloads. We shall see.