Sugababes analysis
Ahmad wouldn't commit to the price of the service, which will only be available to Virgin Media broadband subscribers, but said he expects it to be equivalent to the price of a couple of albums online. From that we assume the price will be under £20 per month.
He also confirmed that Virgin Media is in talks with a number of other music publishers and hopes to have any of them on-board when the service in time for Christmas this year.
Virgin chairman Richard Branson said: "I'm thrilled to see Virgin back where it belongs at the heart of music and, once again, breaking the mould. Virgin Media's agreement with Universal is a world first and lays the ground for a truly unique service when it launches later this year. It will give music fans all the MP3s they want for a small monthly fee whilst supporting the artists whose creativity is the lifeblood of music."
But, more importantly, the Sugababes provided this analysis: "We know our fans want to do the right thing. Now they can."
We'd like to hear your thoughts on this proposition. Do you agree that it's the only sensible way for the music industry to combat illegal file-sharing? Do you think people are happy to pay a reasonable amount for their music? Will this deal tempt you to use Virgin Media if you don't already? Let us know in the HEXUS.community discussion forums.