London - U.K. broadcaster and broadband provider BSkyB announced on Tuesday that it has formed a joint venture with major label Universal Music Group, that will create an MP3 store and accompanying unlimited download subscription service for the U.K. and Ireland. Sky, in which News Corp. (NYSE: NWS) holds a 39% stake, said it is also in discussions with other major and independent record labels on adding their tracks to the service, for which Universal will provide "hundreds of thousands of songs."

Sky will be the majority shareholder in the joint venture company, while Universal will be a shareholder and "play a leading role in the service's ongoing development."

Sky added that "other key partners will be invited to take a stake in the venture," which is scheduled to launch later this year.

"It's clear that there's huge demand for online music and companies like Sky and Universal Music are well placed to work together to meet consumers' needs," said BSkyB chief operating officer Mike Darcey.

"We aim to offer an easy and affordable service for all UK music fans, while ensuring that artists are properly rewarded for their creativity."

Related Links:
http://snipurl.com/33asy

http://www.umusic.co.uk

http://www.sky.com