Another digital music service within the Rupert Murdoch empire has entered into a licensing deal with indie labels digital rights body Merlin. The Sky Songs service, which launched in October with all four majors on board but no Merlin deal in place, will now also be able to offer music from the indie labels the rights body represents.

As previously reported, Sky Songs offers an unlimited play streaming service plus between 10 and 15 MP3 downloads a month for a set monthly subscription of £6.49 or £7.99. It is the BSkyB internet service provider's first serious play in the digital music space, and in many ways competes with the recently expanded streaming service offered by MySpace Music, also part of the wider Murdoch media empire.

Confirming the Merlin deal Sky Songs GM Justin Moodie told CMU: "I'm delighted to add Merlin, and the fantastic music they represent, to the Sky Songs catalogue.  We aim to constantly grow and improve the Sky Songs service and this addition is a welcome step in that direction".

Merlin master Charles Caldas added: "We are delighted the Merlin repertoire will now be available on the Sky Songs service. Combining the strength and profile of our members' artists, the comprehensive set of repertoire already available, and the strength and reach of the Sky brand, we believe Sky Songs will continue to encourage even more music fans to subscribe to access quality music online".

Sky will this week launch Sky Songs, its much previously reported online music service, which, as expected, will include unlimited streaming and a certain number of MP3 downloads for a monthly subscription fee. Basically pretty much the same deal as Napster launched last week, though they are offering a ten track a month package for £6.49 and a fifteen tracker for £7.99.

Here is what Sky's COO Mike Darcey has to say: "Our music partners bring an outstanding catalogue and unrivalled expertise that complements Sky's strengths in content distribution. Sky Songs will reach out to consumers who want legitimate digital services offering choice, ease of use and great value. Offering legal access to digital music is a vital step in combating illegal downloading".

Sky's new digital music service has a holding page live at songs.sky.com. The main page says "a new way to discover music - coming soon". There are also artists, feature and news sections all of which seem to feature some pilot content. It was on their news page, for example, that I learned that rumours of a B*Witched reunion have been denied by former members of the terrible Irish pop group. A revelation that is making me warm to Sky Songs somewhat.

Also securing all four majors for their planned digital music service are BSkyB. The satellite telly company announced its plans to launch its own download service - pitched mainly at its ISP customers - last year. They had a partnership with Universal Music from the start and have been busy signing up the other majors and the indies ever since.

It's not clear exactly how the Sky service will work, though a source has told Music Week that it will combine a free streaming service, a subscription offer and an a la carte download service. That presumably means it won't be offering all-you-can-eat digital rights management free MP3s for a set monthly sum, as their rivals Virgin Media are proposing. Though, as previously reported, Virgin are yet to get all the majors on board - and all but Universal seem reticent to sign up to their proposed service.

The Register has reported that BSkyB's previously reported subscription-based music service could launch this side of the summer, offering access to a Spotify-style streaming music service for a monthly subscription of between £4.99 and £11.99.

The subscription would provide unlimited streaming and some downloads - five tracks with the cheapest subscription package, twenty or two albums with the most expensive. The service, working title Sky Songs, is a JV with Universal Music, though presumably it would look to licence music from all four majors and the bigger indies.

While Sky has not had huge success in developing successful online products, some point out they did successfully manage to launch the pay-TV model in a market where TV had previously been free to access. They also have an existing subscriber base of online and TV customers for whom Sky Songs could be an add-on service bundled in to existing subscription fees.