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Oz music download sites declare price war

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Australia's digital music market is getting aggressive. Distributor Destra today said it would cut the price of downloads to AUD0.89 ($0.65) per song during April.

The cut is a direct response to national telco Telstra's announcement that it would this month offer songs at AUD0.99 ($0.76). The telco usually charges its BigPond broadband subscribers AUD1.49 a song, and customers of other ISPs AUD1.89, the Sydney Morning Herald reports.

Analysts reckon that both companies are running their April promotions at a loss, the paper says.

Destra supplies digital downloads to Australian music retailers like HMV, Sanity and JB Hi-Fi. It currently offers some 200,000 tracks, but has pledged to increase that figure to 500,000 by the middle of the year.

Both companies' April promotions come ahead of entry into the music download market of NineMSN, the joint venture between Microsoft and TV station National Nine Network. ®

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