HMV partners Microsoft, dumps iPod

The new project looks likely to replace HMV’s existing download service, which launched in September in conjunction with OD2.

The new service will offer downloads in Windows Media Audio, a move which is likely to alienate iPod users, which is incompatible with the WMA format.

As a result, HMV may stop selling Apple products, including the market leading iPod, according to Paul Barker, head of corporate communications at HMV.

The high street giant, which holds 25% of the UK recorded music market, said it will invest £10m in the project which will include a customized jukebox.

HMV chief executive Alan Giles said: “We have a unique opportunity to leverage the HMV brand, customer base and our store network to establish a strong position in the newly-emerging market for paid-for music downloads."

HMV has not disclosed the price that consumers would have to pay for each song, or how many tracks would be available, compared with the stock in its 200 stores.

These details would be announced once deals have been agreed between HMV and the music companies in the new year, a company spokesman said.

In a statement, HMV said that when the Microsoft service launches, it will be the "exclusive digital download proposition" for HMV.

A spokesperson for HMV said it was "too early to say" if the firm will drop its existing OD2 powered service when the new product goes live.