Virgin Megastores launched an online download site for U.K. customers Monday, promising to revive the music single by offering cheap, pay-as-you-go downloads.

The launch comes as music companies report dwindling record sales, as well as a 40% dip in single sales from last year, according to the retailer, part of Virgin Entertainment Group Inc.

Users can now download songs from www.virgin.com/download for as low as £0.60 ($0.95), which can then be burnt onto a CD. Virgin is also giving customers the ability to listen to 30-second samples of more than 200,000 tracks, as well as access to exclusive content.

The site requires no subscription, mirroring Apple's successful iTunes music store. ITunes' has swept the U.S. online music market, and reported Monday that consumers have bought or downloaded more than 10 million songs from the service since it launched four months ago.

Virgin is touting its new service as the cheapest in Europe, however, and said that with the U.K.'s high rate of computer users it expects quick uptake.

"Music fans are driving the demand for digital music and now the technology is there, the industry is behind it and -- with the introduction of our service -- prices are affordable for all," Virgin Chairman Richard Branson said in a statement.

The service is aiming to undercut a similar digital music service launched by Microsoft's MSN Music Club and Tiscali last month. That service, accessible through Microsoft's Windows Media Player 9 Series software, offers songs priced at priced at £0.75.

Mark Mulligan, senior analyst with Jupiter Research in London, said that Virgin's offering will not be too different from MSN and Tiscali's services, given that it is also powered by On Demand Distribution's music catalog, but that the pricing and exclusivity will help stimulate the online music market.

"These services are really beginning to put some life into the dwindling singles market," Mulligan said.

The analyst predicted that the online music market will really take off during the Christmas season, however, when retailers will offer discounted albums for download.

The IDG News Service is a Network World affiliate.