"Over the past few years, we have watched Apple climb the music sales chart courtesy of the iTunes. Last month we learned that Apple passed Best Buy to become the number two retailer in the the US. Now, Apple has ascended to the top of the charts, surpassing Wal-Mart for the first time ever, according to the NPD MusicWatch Survey," Eric Bangeman reports for Ars Technica.

Is Apple rethinking its music strategy?

As part of a deal to offer devices featuring preprogrammed music, Apple would have to agree to share sales revenue from the devices with the labels, says a source close to the deal. Cutting the labels in on iPod or iPhone revenue would mark a sharp turn in Apple's strategy.

Facebook may be getting closer to launching a music service that competes with Apple's iTunes, the Financial Times reported Wednesday," Caroline McCarthy reports for CNET.

"Sources told the publication that Facebook has been approaching major record labels about licensing deals so that it can sell music through its Web site," McCarthy reports.