Should record companies agree, the move would find Tesco paying just 50p upfront for a typical album rather than the current £7 or £8, according to a report in the Financial Times. Tesco would then pay the remainder of the money to labels once it had sold their stock.

Tesco entertainment director Rob Salter told the Financial Times the move would allow the company to stock a wider range of CDs within its shops. However, some industry executives have warned ...