7digital has introduced 50p downloads on many new releases as well as " significant reductions" on a selection of albums.
Over 50 per cent of the company's catalogue is now available in MP3 format and, like iTunes, the entire EMI catalogue is available without digital rights management technology.
7digital is also selling EMI content in 320Kbps MP3 files, whereas iTunes provides the DRM-free content at 256Kbps in AAC format.
The UK firm has also introduced a 'locker' which keeps music and video bought from any 7digital service in one area, accessible from anywhere with an internet connection. Apple requires users to download the music to their PC.
Apple's iTunes commands around 80 per cent of the digital download market, largely because of the proliferation of the iPod music player. 7digital is targeting users of rival MP3 players as well as iPods.
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