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In a challenge to Apple iTunes, AOL has acquired the MusicNow digital music service from Circuit City AOL, and will offer 99-cent single downloads and a monthly subscription service, reports InternetRetailer. AOL MusicNow will charge a subscription of $14.95 per month for unlimited streaming and downloading to a computer and to any "PlayForSure" compatible music device. MusicNow offers a digital catalog of more than one million songs and was founded in 1999 as FullAudio. Circuit City acquired it last year.