Tesco tunes up for download war

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01/05/2008

Not content with having dented rivals in areas as diverse as clothing, cosmetics and insurance, this month Tesco takes on Apple in the world of digital music downloads. The retail giant is to offer downloadable tracks for MP3 players, and while prices are yet to be announced, analysts believe they are likely to undercut iTunes and others. Tesco Digital plans to make 3.3m tracks compatible with MP3 players by the end of this year, with 1.6m available initially. It also expects to add downloadable films, TV shows and computer games. However, Apple will be hoping that the strength of the iTunes brand will win over competitive pricing - according to an independent report by market research firm NPD, iTunes has just overtaken Wal-Mart to become the number one brand for downloads in the US.

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