There is clearly huge demand for music delivered digitally

Jay Samit, EMI

Pressplay is backed by Sony and Universal, who have so far promised their catalogues to it exclusively.

Artists in the EMI stable include David Bowie, Radiohead and Kylie Minogue. EMI has also agreed licences with online music firms Full Audio, HitHive and Streamwaves.

Huge demand

MusicNet and Pressplay are the industry's attempt to attract people away from the unofficial music download services that have sprung up since Napster's decision to develop a paid-for service.

"There is clearly huge demand for music delivered digitally and we want to support as many innovative and competing music services as possible," said Jay Samit, senior vice president of new media for EMI Recorded Music.

EMI was always likely to be the first company to offer licences to both services because its core business is music production, according to Jupiter Media Metrix.

Analyst Aram Sinnreich said: "They don't want to own distribution. They're just a record company."

It is now thought other companies will follow suit and license catalogues to both services. Both MusicNet and Pressplay have vowed to launch before the end of the year.

Napster revamp

Napster has also promised its users it will be up and running with a subscription-based website by the New Year.

Mr Sinnreich added that it would take time for the sites to become established with a consumer-friendly model.

"I think that both services will continually have to be revamped and re-conceived for the next few years before the right features and the right price point is decided upon," he said.

EMI recently issued a warning that profits for the year could be down as much as 20%, blaming difficult trading conditions for the music industry.