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Music Stores in Download Price Battle ; High St Bonanza May Spell the End for Cds

Posted on: Wednesday, 31 August 2005, 18:00 CDT

TWO of the high street's biggest record stores have gone head-to- head in a digital download war that could sound the death knell for CDs.

Virgin and HMV will both launch new online download services in a move that is expected to revolutionise the way music is purchased.

The number of songs officially downloaded from the internet has shot up by 50 times in the last year from 10,000 to 500,000 per week. Experts predict a tough battle for supremacy as the heavyweight pair move aggressively into the market.

Virgin Digital will officially launch its service on Friday, while its rival HMV Digital service goes live on Monday.

Both will offer an online "jukebox" to which subscribers will be allowed unlimited access while they continue to pay a set monthly fee. The stores will also sell songs singly that can be kept even after the subscription has ended.

But the launches are bad news for iPod owners. The downloaded tracks from HMV and Virgin will not play on the hugely popular Apple devices. The entry of HMV and Virgin into the market is expected to push digital into the homes of older music fans untouched by the iPod.

CDs are expected to join music cassettes in terminal decline. A spokesman for the British Phonographic Institute described the double launch as "the tipping point for digital downloading".

Virgin Digital's basic Pounds 9.99 monthly subscription gives access to 1.2 million tracks for up to three home computers.

The premium Pounds 14.99 subscription lets users transfer unlimited tracks to compatible MP3 players, though they expire when the subscription does.

A permanent copy of a track costs 79p.

Virgin has claimed its prices will be cheaper than HMV's, to be unveiled tomorrow, but HMV will offer a larger library of 1.5 million songs and exclusive performances from bands.

Mark Bennett, head of HMV Digital, said: "Many people are ready to start downloading for the first time. They just need the right encouragement from a trusted brand." Virgin Group founder Sir Richard Branson promised "the ultimate destination to buy, stream, burn and enjoy the best the music world has to offer".

Source: Evening Standard; London (UK)

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