HMV, which has a number of outlets in Ireland, today announced plans to develop a digital downloading service with software giant Microsoft, tapping into demand for online music.
The applications, which HMV hopes to launch in the second half of next year, include a customised "jukebox" where customers can find, download and buy music online at home and through terminals in HMV stores.
Shares in HMV, which also owns the Waterstone's book-store chain, leapt as much as 4.3 per cent on the London Stock Exchange today to 256-3/4 pence, valuing the company at around £1.3 billion pounds.
HMV said it would invest around £10 million pounds to launch the new service.
HMV customers will be able to listen to the digital downloads on over 75 portable players currently in the market, such as the Philips MP3 player, HMV said.