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We had earlier reported of Yahoo shutting down its Music store by 30th September and with that would end all support that has been available for customers who bought music along with DRM licensing servers. This would have left everyone who got their music from Yahoo, without a license to play it. Yahoo has somehow got some senses kicked in its head and has announced to refund its customers for the full value of their purchases, as reported by Frederic Lardinios.

In return Yahoo would also make the purchased music available as MP3s without any DRM and all the users who had subscribed to Yahoo will have it transferred over to Real’s Rhapsody subscription service.

The announcement made by Yahoo was in the wake of similar shut downs made by Sony and MSN. Sony plans at shutting it down by the end of this year, where as Microsoft has extended the support for DRM for another three years. The question however remains; could this action by Yahoo of refunding its customers of the value they paid for music might just trigger a similar demand by those who bought music from MSN? Will MSN switch over plans and follow Yahoo’s trail?

Whatever decision MSN takes, both Yahoo and MSN had been called upon by Electronic Frontier Foundation (an advocacy group for Internet users) to issue refunds for the purchases made.