Kelly Jones' Stereophonics are covered in the deal

The London-based firm said it had signed agreements with major record companies including Warner and BMG.

It said it expected to sign deals with the other major before the service was launched next month.

The service would start in the UK but would then be "rolled out to the rest of Europe, the US and Asia", it added.

Called Mean Fiddler Media, the service will be available through the internet and through mobile phones.

"The stand-alone business has been launched in response to current market demands for legal competitively priced music downloads," it said.

Top names

It follows the launch of the iTunes service in the US, which sells millions of downloads a month.

Mean Fiddler owns venues such as London's Astoria Theatre

Acts confirmed include rock bands such as The Darkness and Stereophonics, as well as Dido.

British rock band Muse - who have had the biggest-ever download track with their single Stockholm Syndrome, are also included in the deal.

Mean Fiddler Media also wants to sell content from its concert and festival venues.

As well as organising the Reading and Leeds festivals held every August Bank Holiday weekend, it also helps organise the Glastonbury festival.

Mean Fiddler runs a range of music venues in the UK, including London's Astoria, Forum and Jazz Cafe.

Trials have already been undertaken through the Jazz Cafe's website and the site for the Astoria's G-A-Y club night.

"Both trials have been very successful and the company now plans to roll out these services to the rest of its activities," it said.