America Online Inc. (AOL) announced on Thursday (EST) that it had acquired the digital music service of MusicNow from Circuit City Stores Inc.

After the deal, AOL will be able to offer US$99-cent single downloads and a monthly subscription service.

Through this purchase, AOL aims at direct competition with Apple Computer Inc.'s iTunes Music Store.

AOL's monthly subscription price will be US$14.95 at which subscribers can download unlimited amount to a computer or any portable music player.

By People's Daily Online