UBC to offer digital downloads on radio

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UBC MEDIA, the radio group, is planning to launch a digital radio music download service early next year in direct competition with Apple's iTunes and Vodafone's third-generation service, the times reported.

The idea is that listeners will be able to download tunes promoted by local radio stations for a fee of about 99p. The service requires a specially designed £150 (E210) radio, the Pocket DAB 2000, which will not be ready until after Christmas.

Simon Cole, chief executive, said: "We paid about £130,000 for the licences that allow us to do this. Unlike the mobile phone operators, who paid billions for third-generation licences, we think it will be easy for us to make money." UBC hopes to reach an agreement with artists and record labels that will give it about 30 per cent of the total download fee. A small cut would go to the owner of the radio station, leaving the music company with the rest.