Online retailer has confirmed plans to launch a DRM-free online music store with prices undercutting those offered by iTunes.

The new music shop will be called Play Digital and will offer DRM-free music from EMI and a variety of independent labels. The music will play on all devices, including iPods.

Tracks will cost between 65-70p.

Wendy Snowdon, the head of PlayDigital, told Reuters: "We believe DRM-free digital music is the way that digital music should have always been available because we think it is natural to the customer and what the customer wants."