Asda has announced it will be adding music products to its online etailing platform, however it seems to be steering away from entering the download market. Asda will start selling mail order CDs as well as DVDs and video games via their website, expanding the non-food components of their online operations in line with the products it already sells instore.
However, interestingly, it has chosen not to follow the lead set by rivals Tesco and launch a download service. This has led some to speculate that Asda bosses were influenced by the disappointing performance of the download platform launched by their US parent company. The WalMart download service was quick to market with what was then seen as a cut price service. However, despite undercutting iTunes by ten cents a track, they have made little impact, with supermarkets' cut price tactics seemingly not attractive to the early adopters.
That said, Asda have not ruled out entering the download space in the future, and bosses will presumably be watching both the WalMart and Tesco services closely in the coming year. Some argue there will be a place for supermarket digital music operations as the download market goes more mainstream.