The Virginmega.com site will now feature music, videos, DVDs, software and books available at Amazon, which will act as merchant of record. Amazon will provide inventory, fulfillment content and customer services for the site; Virgin contributes entertainment news, interviews, reviews, contests and streamed music. Virgin will also provide location information about its chain and retail stores and about in-store artist appearances and events.

Financial terms of the deal were not released. The two companies will launch a Japanese version of the service later this year.

Amazon has provided hosting services for other companies, including a book shop for Borders, and baby and toy stores for Toys "R" Us.

Amazon also recently signed a deal with Sony to become an authorized Internet dealer for the consumer electronics giant.

"Virgin embraces the latest developments in new technology and we are confident that by teaming with Amazon.com we will champion all means of delivering the broadest and deepest range of music, movies, books and games to our customers," Glen Ward, CEO of Virgin Entertainment Group, North America, said in a release.

As part of the agreement, Radio Free Virgin, a digital radio broadcasting company, will be linked to from Virginmega powered by Amazon shortly after the launch.

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