Sky is to launch an online subscription music service with Universal, in a deal that could challenge Apple’s iTunes.
The service will offer downloads to keep and unlimited listening through streaming for a single monthly subscription.
The tracks will be in the MP3 format, meaning they can be used on devices including the iPod and mobile phones.
BSkyB will form a new joint venture to launch the service in Britain and Ireland, building on its relationship with millions of customers and Universal’s hundreds of thousands of tracks from artists such as Amy Winehouse and U2.
The pay-TV group, which has James Murdoch as its non-executive chairman, said it was in talks about signing other major music labels and would release more details at a later date.
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