Virgin Megastores launches online music download site

September 9, 2003

Online music stores are
hot and recently more and more companies are trying to launch a music store
of their own. Currently Apple's iTunes store is one of the most
successful online music downloading services but as of
yet, it's only available to Mac users (although this will change at the end of
this year).

GristyMcFisty reports us that Virgin Megastores
has now also launched an online download site, offering
digital music tracks for 95 cents. The Virgin store offers around 200,000 tracks and users are allowed
to burn downloaded tracks to a CD-R. Virgin is also giving customers the
capability to listen to 30-second samples of the tracks, as well as access to
exclusive content:

The site requires no subscription, mirroring Apple Computer's
successful iTunes music store. ITunes has swept the
U.S. online music market, and Apple reports that consumers have bought or
downloaded more than 10 million songs from the service since it launched
four months ago.

Virgin is touting its new service as
the cheapest in Europe, however, and expects quick uptake with the UK's
high rate of computer users.

"Music fans are driving the demand
for digital music and now the technology is there, the industry is behind
it and--with the introduction of our service--prices are affordable for
all," said Richard Branson, Virgin chairman, in a statement.

Spurring
Songs

The service is aiming to undercut a
similar digital music service launched by Microsoft's
MSN Music Club and Tiscali SpA last month. That service, accessible
through Microsoft's Windows Media Player 9 Series, offers songs priced at
$ 1.20.

Mark Mulligan, senior analyst with
Jupiter Research in London, says Virgin's offering will not be too
different from MSN and Tiscali's services. All services are powered by On
Demand Distribution PLC's music catalog, but Virgin's pricing and
exclusivity will help stimulate the online music market.

"These services are really beginning
to put some life into the dwindling singles market," Mulligan says.

The analyst predicts the online
music market will really take off during the Christmas season, however,
when retailers will offer discounted albums for
download.

Source: PCWorld