7digital.com has issued a statement saying that it is igniting "a price war" and has challenged online retailers, including Apple's iTunes, to match the quality and price of its DRM-free MP3 downloads.

7digital offers up to high-quality 320kbps format MP3s that are free of DRM and work on all media devices including MP3 players, iPods and mobile phones.

"Static pricing and inferior quality formats being offered by certain online retailers is limiting consumer uptake of digital downloading", comments Ben Drury, CEO, 7digital.com.

"We've decided enough is enough - we are now offering MP3 album downloads from £5 giving an equivalent track price as low as 10p each."

7digital.com has a 3.5-million plus strong catalogue of downloads, with approximately 70% of artist material available in the MP3 format at up to 320kbps quality.