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The service is being offered in conjunction with Universal Music group, and will feature music from artists including U2, Kanye West, Amy Winehouse, the Killers, Snow Patrol, Luciano Pavarotti, ABBA, Eminem, Andrea Bocelli and Elton John.

Starting later this year. users will be able to listen to the selection of songs on the service as much as they like for a monthly subscription charge. They will also be offered the opportunity to download songs to keep permanently.

Sky will offer a range of subscription options, with different download packages depending on customers' needs. Tracks downloaded will work

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on any MP3 device including iPods, other portable MP3 players and mobile phones.

Universal Music is the first partner in the service and, according to Sky, will play an active role in the service's development. The company will offer access to its entire catalogue, and will be shareholder in the service. Sky revealed that it is currently chasing other companies to partner with it in this venture.

"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 Mike Darcey, chief operating officer at BSkyB.

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

Lucian Grainge, Chairman and Chief Executive, Universal Music Group International, added: "The new Sky service will provide a compelling digital music experience, built for the ever growing digital appetite of music fans. In a world where a majority of UK homes have high speed broadband access, consumers will welcome a safe, state-of-the-art service and legal alternative to those services which exploit musicians without compensation."