Circuit City, Napster in digital music deal

NEW YORK (CNNMoney.com) -- Circuit City announced Friday that it is teaming up with online music service Napster to offer consumers a new digital music service, Circuit City + Napster.

Circuit City (Charts, Fortune 500), the No. 2 electronics retailer after Best Buy (Charts, Fortune 500), said the service, which launches April 29 on the retailer's Web site, will give customers unlimited access to "millions of songs" for $14.95 a month.

But customers can also buy individual downloads for 99 cents each. Circuit City said it will also sell pre-paid download cards for the service in its stores.

This is latest attempt by the electronics seller to inject some much-needed buzz for its brand as Circuit City's sales continue to lag behind sales of rival Best Buy. Best Buy in October unveiled its own digital music store in collaboration with RealNetworks' (Charts) Rhapsody 4.0 music service.

Earlier this month, Circuit City reported a fourth-quarter loss and said it embarked on numerous restructuring efforts, including replacing 3,400 store workers with lower-paid employees in a bid to cut costs.