Warner Music U.K. has agreed trading terms with mass merchant Tesco for new music releases in Q4.

This week Warner had said it would not supply Tesco with new releases because the trading terms offered were "unacceptable" (Billboard.biz, Oct. 19).

However, Warner confirmed that an agreement has now been reached. Tesco is a key outlet for physical music in the U.K. Its 800-plus stores devote a substantial amount of floor space to home entertainment products.