The broadcaster is looking to appeal to the growing number of consumers who own devices other than Apple's iPod digital music player, such as the iRiver, Zen and Sony Walkman.
Urge will launch across the latest version of Windows Media Player this week with users able to download individual tracks for 99 cents each, competing with iTunes in the download price war. Consumers will also be able to sign up for a monthly subscription package with unlimited downloads for $9.95 a month or $14.95 a month if consumers want to load music onto a digital player and not simply to their desktops.
ITunes currently charges a set price for a single download of 79p or 99 cents and does not work on a subscription basis.
The new download service is the first in a series of initiatives that will be unveiled by Microsoft chairman Bill Gates, who said: "Software will come in and make things both simpler and more effective.
"Not having to think about disks; having a digital jukebox anywhere in the house so you can call up the movies you want and see anything you want to."
Urge will have more than 2m tracks available from 110,000 artists with 500 playlists and 130 streaming radio stations, compared with iTunes, which has a catalogue of 3m tracks and has sold more than 1bn downloads since its launch three years ago.
Describing the new service, Gates said: "These partnerships will allow you to enjoy high-definition content and take that away on a portable media device."
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