The new site, Urge, will offer 2 million tracks from 110,000 artists, from all major labels, as well as independents
Individual tracks will cost 99 cents (51p) each - the same as iTunes - or subscribers can get unlimited downloads for US$9.95 (£5.27) a month. Downloads will not be compatible with Apple's iPods.
Microsoft and MTV are aiming the service at the growing number of consumers who own digital music players other than iPods.
Urge will use Microsoft's Media Player software, the latest version of which will launch alongside the site.
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