Island Def Jam Music Group Launch New Hip-Hop Label in Partnership with TAG Body Sprays: Island Def Jam and Procter & Gamble’s TAG brand formed a new hip-hop record label, TAG Records which will be led by hip-hop mogul Jermaine Dupri who will act as president. The TAG Brand will showcase TAG Record’s artist and Jermaine Dupri across various TAG brand advertising and marketing initiatives throughout 2008.

Does Free Streaming Sell Music? Last.fm’s free, ad-supported music streams have resulted in a 119 percent increase in music purchases through Amazon, the company said today. Last.fm says they have the proof and streaming free music allowing users to have full-track previews drives music sales, both digital and physical.

So far the Last.fm model seems to be working. The labels get paid every time a track is played and longtime members were buying more music too—there was a 66 percent increase in album and track purchases among existing users.

Radio Links to iTunes: US radio broadcaster, Clear Channel, has linked all of its digital FM music stations to Apple Inc.’s iTunes store, giving listeners a way to buy songs they’ve heard. Clear Channel will now share in revenue from iTunes.

New Music: Denver band Flobots is climbing up the alternative charts. They were discovered after Denver radio station, KTCL, began playing their track Handlebars. The beginning of the track instantly sucks you in and they remind us of novelty act Cake meets Eminem.

Payola: Wired published a column titled ‘Is Sonicbids’ Pay-for-Play Music Promotion the New Payola?‘ that discusses whether they share artists’ fees with the websites that use bands’ content.

Recommended Listening: So Long and Little Pill By Stereoside.