eBay to take on iTunes with digital music sales

Online auction house eBay is set to go head-to-head with Apple’s highly successful iTunes site by forming a joint venture with record label Universal Music Australia to sell digital music.

Digital music tracks will be sold on the site in an unrestricted MP3 format, meaning the files can be played and exchanged on most media players.

Single tracks will be sold at $1.59 and albums at $15.99, which is $1 cheaper than Apple’s iTunes store, the most popular digital music store in the world.

The new site uses digital sales from Universal’s existing Get Music site, but combines them with second-hand music products already for sale on eBay.

eBay Australia currently receives about five million visitors per month, and says the new site will also figure exclusive releases and promotions.

Apple’s iTunes store has sold over six billion digital tracks and accounts for than 70% of all online music sales.

Managing director of Universal Australia, George Ash, said in a statement that UA and eBay are cashing in on the fact that music is one of the topics most searched for on the internet.

“The opportunity to help eBay.com.au connect their members with their favourite acts is without precedent. Universal’s leading market position when partnered with eBay.com.au’s five million monthly Australian visitors is a match made in heaven”.

But when a user clicks on the “Buy MP3” link they are taken to a separate “Get Music” window, and purchasers require a separate account. No integration with eBay is currently offered except the ability to pay via PayPal.

“eBay is excited about the opportunity and is looking forward to being able to provide access to great music to millions of eBay.com.au users,” eBay Australia’s managing director Deborah Sharkey says.

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