The popular marketing tactic of including free CDs with newspapers could be curtailed following the refusal of several large record companies to make their back catalogues available to publishers for this purpose, reports Emmet Oliver

This week, Universal Music, U2's label, said it was no longer prepared to provide material for compilations to be included in newspapers. The label which represents artists such as Snow Patrol and Daniel Bedingfield, will withdraw its back catalogue from the end of March.

Another big label, EMI, has already withdrawn its back catalogue. Sony BMG, which has artists such as Bruce Springsteen and Christine Aguilera on its books, is also believed to be considering such a move, once current contracts with newspapers and magazines are honoured.

Other record companies are considering their position and may insist on only making material available if their artists are specifically promoted by the newspaper or magazine.

Sales of compilation CDs in the shops fell by 10 per cent in Britain last year and record companies believe the endless free offers from newspapers may be a factor.

Mr Brian Berg, a senior executive with Universal Music in Britain, told the Guardian this week: "There are so many of the bloody things, they are doing more harm than good to our compilations business and, on that basis, we feel we'd be better off out of it."

A vigorous campaign from the British Association of Record Dealers has been running for some time against free CDs in newspapers. The group, which represents music retailers, believes the use of free CDs by newspapers ultimately devalues music and results in consumers believing certain music should be free.

The practice of including CDs as a way to push up circulation is now widespread in the Irish newspaper industry. Several tabloid newspapers, including the Star and Ireland on Sunday, have used the CDs in their marketing campaigns. Broadsheet titles such as the Sunday Tribune and the Sunday Independent have also included CDs with their editions.

Yesterday, Ireland on Sunday dismissed fears that the era of free newspaper CDs could be over. Managing director Mr John Thompson said the newspaper had several contracts already in place with record companies and these would be honoured. He said he firmly believed that record companies would continue to make material available.

Independent News and Media was not available to comment on the potential implications for its marketing activity.