LAS VEGAS (Reuters) - Consumer electronics maker Sony Corp. said on Wednesday it would launch an online music service in the United States this year, offering some 500,000 songs for downloading at about $1 per tune.

The Japanese firm, one of the world's biggest makers of home audio and video devices, also unveiled a wireless video screen and a high capacity version of its Mini Disc format capable of recording up to 45 hours of music on a new one-gigabyte disc.

Sony said its "Connect" online music service would at first only work with Sony portable devices. It would set prices that are standard for rivals such as Apple Computer's iTunes and Roxio Inc.'s Napster of 99 cents per downloaded song and entire albums for $9.99.

Sony and other established consumer electronics makers are relying on innovation and specialization in an effort to head off non-traditional electronics companies, such as personal computer makers Dell Inc. and Gateway Inc., which have grabbed market share with low-priced models.

Tim Baxter, head of home entertainment products for Sony Electronics USA, said the company would this year offer more products that combine functions -- such as a home theater system connected to the online service.

"Our role is to create new and exciting markets and whereas other companies are playing up the commoditisation of products and driving cost, we think there are new ways to create entertainment experiences," he told Reuters during a press briefing at the Consumer Electronics Show conference in Las Vegas.

Sony said "Connect," to launch in spring, would allow users to download songs to their personal computers in its proprietary ATRAC3 compression format. The songs could then be moved to Sony portable music products, such as players that use mini-discs or memory sticks.

The company said upgraded software would be released later in the year and eventually users of devices from other manufacturers would be able to use the service.

Sony also unveiled a high-capacity version of its Mini-Disc (MD) and players, called Hi-MD, that allows users to store up to 45 hours of songs on the one-gigabyte disc, or about 34 times the recording capacity of the existing 80-minute disc.

At a later news conference in Tokyo, Sony said it would launch three versions of the new portable MD players in Japan in June. It expects them to retail for about 30,000 yen ($283), 35,000 yen and 45,000 yen, while the discs will sell for about 700 yen.

The MD devices, which will be able to play both the old and the new, more powerful discs, will be launched in the United States in April and in Europe between April and June, Sony said.    Continued ...

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