SUPERMARKET chain Asda has stepped up competition for online music and DVD sales with a new service offering 140,000 products.

All goods costing less than é18 will be tax free because the service is run from Jersey.

Chart albums bought online will cost from é8.97 compared with é9.77 instore. Customers may pre-order items ahead of their release.

Around 120,000 CDs, 20,000 DVDs and 1,700 games can be accessed online at www.asda-entertainment.co.uk.

Tax

Tony Page, Asda's general merchandise director, said a huge range of titles was available on the website.

"The best news is that because we're based in Jersey, we'll pass on the tax savings on every item they buy under é18," he said.

Rival store Tesco launched its Jersey service in 2004, following the lead of other online stores such as Amazon.

A Tesco spokeswoman said: "We wanted to make sure that Tesco.com shoppers didn't lose out. It has provided a very popular service."

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