The company said that its first offering from the new service, launching in May 2008, will be the availability of music to download for iPod and MP3 players. Currently Tesco’s music download service is only available in Windows Media format.

Tesco Digital will initially offer customers a choice of over 3.3 million music tracks, 1.6 million of those in MP3 format, from launch – with the bonus of over a hundred free playable Flash games. The retailer plans to have all music on the site in MP3 format by the end of 2008.

Graham Harris, commercial director of Tesco, said: The new Tesco Digital site is more than a music download portal – we wanted to create an exciting and easy-to-use entertainment shop that Tesco customers of all ages and technical ability can use and trust. We’re starting out with a comprehensive music offering, but customers can expect downloadable TV and films as well as games to buy very soon.