Wal-Mart targets online music market

RETAILING giant Wal-Mart is wading into the online music market, launching its own service which will go head-to-head with pioneers iTunes and Napster.

But while the media may be new, the firm's strategy will be distinctly tried and tested - undercutting rivals to drive sales. Wal-Mart will charge 88 cents per download compared with iTunes' fee of 99 cents.

With the music industry slow to realise the potential of the online music market, Apple Computer's iTunes service has led the way. Launched nearly a year ago, Apple has sold more than 50 million song downloads through iTunes.

Other services, such as Napster, also report strong sales. But now they have a formidable rival. Wal-Mart's conventional store business has grown huge by undercutting its rivals on price, and now it is determined to carry the same approach over to its online business.

It has also expanded the number of songs available on its website by 50% now that its three month trial period has finished.

But analysts question whether the American group, which owns the Asda supermarket chain in Britain, is really committed to the music market - and suggest that the primary reason for the service is to attract people to its online store in the hope of selling them other goods.