Sony Ericsson has struck distribution deals with 10 record companies including three of the world's four major labels, as part of plans to launch its own iTunes rival. The company, which is the world's fourth largest mobile handset vendor by sales, has partnered with Sony BMG, Warner Music and EMI to provide music to its PlayNow web and mobile service, which it will relaunch as an upgraded version in May. The service will attempt to rival the likes of iTunes and Nokia's music service, 'Comes With Music', which the Finnish handset maker launched late last year. Sony Ericsson says its upgraded music portal will be available in 30 countries by the end of this year and will offer more than 5m tracks. Nokia's music service, which distributes music from the other four major label, Universal, already offers 3m songs.

The other labels signed to Sony Ericsson's music service include Bollywood label Hungama and the Orchard, which are popular in Asia and Latin America, respectively. The telecoms firm also announced that the upgraded PlayNow service would offer 250 new mobile videogames thanks to a partnership with Electronic Arts. Earlier this month Nokia signed a deal with Vivendi Games Mobile, to offer its games on Nokia's Download! service.

Sony Ericsson did not say how it plans to share revenues with the labels, or whether the tracks will be DRM-protected. It is not clear either, how the portal will offer the music, whether a la carte or, like Nokia, by subscription. Mobile downloads will generate USD11bn by 2011 and account for almost 30% percent of global music industry revenues by 2011, up from 13% in 2007, according to market research firm Understanding & Solutions. Apple's iTunes, however, accounts for about 70% of the world's music download market.