RETAILER HMV yesterday announced plans for a downloading service.

The group is teaming up with US company Microsoft to develop software and hardware enabling people to download their favourite songs direct to their computers.

About £10m will be invested by HMV in getting the service ready for its launch in the second half of next year.

But HMV refused to comment on pricing, or how many tracks would be available, compared with the stock in its 200 stores.

Those details would be announced once deals have been agreed between HMV and the music companies in the new year, a company spokesman said.

The chain's music downloads will be compatible with Windows Media Audio and, therefore, more than 75 portable players on the market.

But they will not be compatible with the best-selling iPod from computer company Apple, which is estimated to account for nearly 50 per cent of the digital music player market.

Music publishers and stores are increasingly embracing digital technology to counter the threat to sales posed by illegal file sharers.

Last month, entertainment group EMI reported explosive growth in demand for digital music, with sales of downloaded songs surging six-fold during the summer.

Demand for songs downloaded via computer has surged since Apple launched its iTunes music store in the UK, France and Germany in June.

Irish rock band U2 recently signed a deal with Apple to release some tracks exclusively on iTunes.