Tesco to challenge iTunes wtih Tesco Digital

Mighty Tesco is taking on the equally mighty Apple over the digital content market as the grocery-turned-global behemoth plans to snap a share of the growing entertainment market.

Mind you, it might all go pear-shaped - just ask the world's biggest supermarket, Walmart what happened to its audio store - but Tesco is betting that its Tesco Digital, which it announces a one-stop shop for everybody's entertainment needs, will be as popular as its Jersey-based Tesco Entertainment branch.

Tesco already allows you to download sound tracks through Tesco Downloads so it seems that Tesco Digital will probably replace Tesco Downloads altogether.

The service, which will offer 3.3 million music tracks when it will be launched next month, will also offer movies, TV shows and games for downloads as part of the package.

It is unknown whether the audio files will be DRM protected but if Tesco arrival's in the online digital entertainment market will only pile more pressure on HMV, Virgin and the likes.

It is also very likely to attract other supermarkets which will put even more pressure on prices.

Tesco has already announced that the files will be available in MP3 format which means that they will be compatible with all players on the market.