Loudeye and Microsoft have teamed up to offer a virtual music warehousing and distribution service that other companies can use to set-up their own music services.

The service is similar to that offered by OD2 in Europe. The two companies will promote Loudeye's new Digital Music Store and iRadio products, which allow businesses to offer music downloads or streaming media services under their own brand without the hassle and cost of having to build such services from the ground up, Loudeye and Microsoft said.

Initial customers for the new products are AT&T Wireless Services and Gibson Guitar, the companies said. AT&T Wireless is using Loudeye's offering for a mobile music service that it plans to launch next year, while a Gibson unit uses the service for a digital music jukebox.

The Loudeye Digital Music Store and iRadio products are based on Microsoft's Windows Media 9 technologies. Services based on the Loudeye products will compete with existing online music offerings including Apple's iTunes and RealNetworks's Rhapsody.