Sony is planning to shut down its Connect music download service in Europe, and is prepping to release new Walkman media players that are not tied to the company’s ATRAC DRM-protected format. The company made the announcement at the IFA trade show on Thursday, according to Twice.

Sony will phase out its ATRAC music format and online Connect music service in Europe by March 2008. Along with the phase out, the company will introduce two new series of Walkman players that support copy protection-free MP3, WMA, and AAC-format audio files. The players will also support DRM-locked WMA files from subscription-based music services.

Sony’s Connect service has consistently trailed far behind Apple’s iTunes Store in popularity, and has been considered by some to be more restrictive than Apple’s music download service. Freeing the Walkman players from Sony’s proprietary copy protection system will open the devices to a wide range of music download options, too, including iTunes Plus tracks from the iTunes Store.

Sony Europe audio marketing VP, Jeffrey Van Ede, commented "Customers don’t want to be locked into one service, consumers are demanding choice in music."

While opening its players to other music services might help make the devices more appealing to consumers, it may not be enough for the company to make a dent in the market dominance the iPod holds. Apple’s iPod has been the market leader for some time, and that isn’t likely to change any time soon.

The Cupertino-based company is holding a music-related media event on September 5 where new iPod models are expected to be unveiled. Should new iPods appear, Sony may have an even harder time gaining traction with its Walkman players.