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Tesco Digital, the latest challenger to Apple's iTunes

by Parm Mann on 15 April 2008, 11:23

Tags: Tesco (LON:TSCO)

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Tesco today announced plans to revamp its digital music offering in the form of Tesco Digital.

The service, gunning for the lucrative market currently belonging to Apple's iTunes, will offer 3.3 million MP3 tracks when it launches next month. It isn't yet know if the tracks will be DRM-free, but we expect further details soon.

Music downloads will be just the start, as Tesco plans to make TV, movies and games all available directly from its Tesco Digital store by the end of the year.

Tesco's commercial director, Graham Harris, said:

"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. We're starting out with a comprehensive music offering, but customers can expect downloadable TV and films as well as games to buy very soon. Music is just the start - it really is a case of watch this space."

It should be noted that Tesco already offers a similar service on a much smaller scale in the form of Tesco Downloads. The store however has a much smaller number of tracks available, and only supports the WMA file format. It is widely believed that Tesco Digital will replace Tesco Downloads completely.

It's a big step for Tesco, who have over the past years ventured into a variety of areas such as mobile phones, broadband and insurance. Its ventures have resulted in continued success as the company today announced an 11.8% rise in annual profits for 2007 to £2.846bn.

The battle for digital supremecy is already fought among big names such as Apple and Amazon. Though Tesco is yet to announce the pricing of tracks available from Tesco Digital, its new store could shake-up the online music scene.



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