Universal Music chairman Lucian Grainge says failure to reduce illegal music downloading could destroy established media.
The company has entered an subscription mp3 download deal with Virgin Media because the internet service provider has pledged to cut off customers who carry out illegal file sharing.
As part of the deal, Virgin has pledged to aggressively police use to stop the MP3 tracks going to file-sharing networks.
The firms announced the agreement ahead of the publication of Digital Britain, the government-commissioned report into the future of the UK's media technologies.
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