Tesco to launch digital download service

LONDON, UK: Tesco said it will open an online shop next month selling music, films, games and television programmes for iPods and other digital players.

The supermarket chain's new download service will compete with Apple's iTunes site as well as British operators like HMV, 7Digital and Woolworths.

It will replace its existing digital site that offers a limited selection of music in a format that can not be downloaded directly to iPods.

Tesco Commercial Director Graham Harris said he expected the launch in May to "shake up" the download market by attracting a wider range of consumers.

"We wanted to create an exciting and easy-to-use entertainment shop that Tesco customers of all ages and technical ability can use and trust," he said.

Download prices have yet to be announced. A Tesco spokesman said they would compete with rival services which typically charge about 80 pence per music track.

Tesco Digital will at first offer a choice of 3.3 million tracks, 1.6 million of those in the popular MP3 format.

Films and episodes of TV programmes will be added by the end of 2008.

Digital music sales are growing strongly, fuelled by the popularity of portable music players.

The International Federation of the Phonographic Industry, a trade body, said download sales rose 40 percent in 2007.