RETAIL GIANT HMV is set to take on the might of Apple’s iTunes.

The traditional music store is to open a new online outlet called HMVdigital. The store is powered by 7Digital, a download and streaming service that powers Spotify. HMV bought a 50% stake in 7Digital last September.

Songs on the site are being offered at the same price as those on Itunes – £0.99 but the top 40 singles will be sold at only £0.40. Apple charges a premium for its most popular songs. The site is offering a library of over 10million tracks.

As part of the new launch, HMV is offering five tracks for free on a first-come-first-served basis. Songs downloaded on HMV Digital will automatically synchronises with iTunes or Windows Media Player libraries and users can re-download tracks if they lose them.

Chart albums cost from £4.99.

HMV is one of the last big music stores standing after the collapse of Zavvi and Woolworths. The move is part of a new strategy for the organisation.