Tesco to launch iTunes challenger

Tesco is launching an online music service next month with more than three million tracks available to download and more content to follow.

Tesco Digital will initially offer all of the tracks in Window Media format with around half (1.6 million) also available as MP3s.

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Tesco hopes to make all tracks available in MP3 format by the end of the year while there will also be more than a hundred free Flash games on offer at the launch.

There are also plans to expand Tesco Digital to TV, films and games in the near future.

No details of pricing are yet available but Tesco says it plans to offer "variable pricing" on albums and individual tracks along with pricing bundles for music and videos. Customers will also be able to earn Tesco Clubcard points on their purchases.

Commercial director at Tesco, Graham Harris, said Tesco wants to create an "entertainment shop" that is easy to use and which customers can trust.

A Tesco spokesman added the music download service isn't intended to go up against iTunes specifically, but is more about making the retailer a player in the market.