Amazon And Pepsi To Offer Free Music and Pepsi have teamed up for a new free music cross promotion that will see Pepsi drinkers earn free music with Pepsi purchases.

“Pepsi Stuff” is billed as a “massive collect-and-get program” where “consumers can download the most DRM-free MP3 music available anywhere.” In layman’s terms, drink lots of Pepsi, get DRM free music for free on Amazon.

Starting February 1, Pepsi users must “bank” their points on to redeem them for music on Amazon MP3.

Cross promotions of this kind aren’t new, but it does show the seriousness of Amazon to promote its DRM free music store to a wider audience (Pepsi has previously given away iTunes downloads). It was only 12 months ago that we wrote about the inevitable death of DRM, yet one year later in 2008 the market is now focused on which DRM free music provider comes out on top, and we wouldn’t have it any other way. Hopefully the increasingly cut-throat competition will result in downwards pricing pressure as well in the coming months.