Sky to rival iTunes

Sky is set to launch a new music download service.

A deal with Universal Music sees the TV broadcaster offering normal song and album downloads and a subscription service allowing unlimited streaming of songs and a limited number of downloads - depending on the level of the subscription.

Prices will be announced later in the year when the service is launched.

Sky is positioning itself away from the Apple iTunes direct download service and more towards families wanting greater access to music.

Mike Darcey, BSkyB chief operating officer, said: "It's clear that there's huge demand for online music and companies like Sky and Universal Music are well placed to work together to meet consumers' needs.

"We aim to offer an easy and affordable service for all UK music fans, while ensuring that artists are properly rewarded for their creativity."

The entire Universal catalogue will be available – with artists including Amy Winehouse, ABBA, Eminem and Kanye West.

Sky is also believed to be in discussion with a number of other major and independent record companies.

Lucian Grainge, chairman and chief executive of Universal Music, said: "In a world where a majority of UK homes have high speed broadband access, consumers will welcome a safe, state-of-the-art service and legal alternative to those services which exploit musicians without compensation."

Downloaded tracks on the Sky service will work on any mp3-compatible fixed or portable device, including iPods, mp3 players and mobile phones.