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Apple has launched its video downloading service in the UK, allowing viewers to buy TV programmes from its iTunes store.

The company is initially making 28 series available via the site, which will compete with the catch-up TV services of UK broadcasters.

Movie rental company Blockbuster has snapped up film downloading service Movielink after negotiations said to have lasted since March.

The move, the retailer hopes, will give it a stronger presence in a fast-growing but small and competitive market.

Global CD sales fell sharply in 2006 and, though downloads of music are on the increase, overall music sales declined.

Figures from the IFBI, the global music industry association show that total music sales fell 5% from $20.7bn (£10.25bn) in 2005 to $19.6bn (£9.73bn) last year.

Amazon looks to be taking on Apple's iTunes by opening its own music download store, with rumours suggesting the service will be DRM-free.

According to The Independent, Amazon CEO Jeff Bezos has been in discussions with the four major labels to persuade them to allow their music to be sold without DRM protection.

Lovefilm.com, the online DVD rental company, has announced the launch of the UK's first legal movie download service, which will allow customers to burn downloaded movies onto blank DVDs.

The move is prompted by Lovefilm's research into its customer's preferences, which found that 57% wanted the opportunity to create their own discs from their downloads.

Revenues from online creative content across Europe will reach €8.3 billion (£5.5 billion) by 2010, according to an EU study. The spread of broadband, mobile and the adoption of digital gadgets will drive the growth.

The research, titled 'Interactive Content and Convergence: Implications for the information Society' assessed the outlook for the online content market, identifying growth areas and potential 'roadblocks' for the market.

A new Nielsen//NetRatings report has revealed that young people are the biggest spenders when it comes to online content, with the 16-24 year old age group leading the way.

Overall, UK internet users currently spend an average of £3 a month on downloading content, with videos taking 43% of the market.

Owners of Microsoft’s Xbox 360 will soon be able to watch and download a range of movies and TV shows through their consoles.

Microsoft has announced that it plans to rival Apple by renting and selling downloaded movies and TV shows through Xbox Live, though the video service may well be more about the console wars with Sony's PS3 and Nintendo's Wii.