Warner Music U.K. has confirmed it will not supply Tesco with new music releases under the trading terms the mass merchant has offered for the fourth quarter.

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.

Earlier releases will not be affected by the dispute, including hit albums from 2010. But new Warner music will be held back unless an agreement can be reached. A new edition of Michael Buble's "Crazy Love" is one of the first releases to be affected. Warner has forthcoming albums from James Blunt, Kid Rock and Rumer.

"Unfortunately our recent negotiations with Tesco have been unsuccessful as we believe the trading terms they are offering are unacceptable," said a Warner Music spokesman. "As a result, Tesco will not carry our forthcoming new releases. We have some incredible albums lined up for the rest of the year, and we are disappointed that they will be unavailable to Tesco customers, but these titles will be widely available elsewhere."