Sky will offer UK consumers access to more than four million tracks, via a subscription-only service, that will allow unlimited streaming and download-to-own MP3s.
The broadcaster will not offer a free access service, such as that by Stockhom-based Spotify, which is funded by radio-style advertising.
All four majors - EMI, Sony, Universal and Warner - plus independent labels and distributors including the Beggars Group, PIAS Entertainment Group, The Orchard, IODA and VidZone Digital Media will made their content available via Sky Songs.
Pricing starts at £6.49 per month, with a second subscription available at £7.99. Both packages include unlimited streaming and a number of free downloads. Customers can also purchase single tracks from 65p.
Mike Darcey, Sky's chief operating officer, said offering legal access to digital music was "a vital step in combating illegal downloading".
"Sky Songs will reach out to consumers who want legitimate digital services offering choice, ease of use and great value."
Eric Daugan, senior vice president, digital business, Warner Music Europe, said: "This flexible music platform offers access to unlimited music as well as premium fan-oriented content, whilst ensuring our roster of artists are appropriately rewarded for their creativity."
Andria Vidler, who recently became president, EMI Music UK & Ireland, having moved from Bauer, welcomed Sky's entry into the music market.
"The widespread adoption of DRM-free downloads has helped drive new digital music services and with Sky's launch we have another major player who will help our artists and their music reach an ever wider audience," she added.
Sky launches its music service into an increasingly competitive market. Spotify and We7 offer ad-funded free to access services, while Napster, Nokia and Rhapsody offer subscription services, with BT also reportedly looking to move into the market.
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