Amazon tunes into Apple battle

[hari]

Apple and HMV, beware. Amazon.com, the world's biggest online retailer, is preparing to launch its digital music service in Britain as it attempts to expand its share of one of the world's fastest-growing consumer industries.

Executives from Amazon's MP3 store, which launched in the US last year, are understood to have been in London last week to thrash out details of the launch with British record company bosses.

Amazon MP3 will compete directly with iTunes, Apple's online music store, and other digital downloading operations when it goes live. People familiar with Amazon's plans say its site is likely to be unveiled before the final quarter of the year, when a string of high-profile artists, including the Scissor Sisters and Snow Patrol.

The launch by Seattle-based Amazon.com will further intensify competition in the music retail market, with high street stores facing a battle to retain market share.

Although downloads accounted for only 9.2 per cent of the album market last month, according to figures published by the British Phonographic Industry, the trade association, digital sales swallowed more than 96 per cent of the singles market during the same month.

Amazon believes it can attract an immediate following for its music retail business in Britain because MP3 tracks can be played on the majority of devices with digital music-playing capabilities.

The British launch will form part of an international rollout for Amazon MP3.