The Play.com web site has started offering high quality (320kbps) MP3 music downloads at prices from 65p, with about a million tracks from EMI and independent music labels. The files don't have DRM (digital rights management) copy protection and so will play on almost any music player, mobile phone or personal computer.
Apple is already offering EMI tracks without DRM, but in the AAC format, which not all devices support. Also, while Play.com's prices vary (many tracks cost 70p), a spokesman said: "we're going to be cheaper than [Apple's] iTunes. Whatever price iTunes goes down to, we'll be looking to go lower."
The EU has told Apple to standardise its prices across Europe, and it is thought it might cut UK track prices from 79p to 66p or so.
Play.com is also expected to face competition from Amazon.com, which is already undercutting Apple on price, and is offering a large DRM-free music library in the US. It is expected to launch the service in the UK this year.
And unlike Play.com, Amazon has already signed up all four music majors -- Universal, Sony BMG, Warner Music Group and EMI.
Play.com says it is talking to the other three, "and if one or more had been quicker we might have held off the launch. We think that within the year, the others will be on board."
In the UK, eMusic has also been offering DRM-free tracks from smaller labels for more than a year, but Play.com says it's not trying to compete with more specialist music sites. Its core business is selling CDs and computer games, but it also sells books, gadgets, phones and clothing. "We see ourselves as an e-tailer, and we're really pleased to have trumped Amazon"
Update: Katie Allen, our Media Business Correspondent, has covered the story here.
