Real and friends take on iTunes (again)

Stephen Withers
Wednesday, 22 August 2007 02:14

Business IT - Technology

A coalition of RealNetworks, MTV Networks and Verizon Wireless will attempt to displace Apple's iTunes Store as the leading retailer of downloadable music.

"[I]t's like we've put the best lead singer, drummer and guitarist all on the same giant stage, allowing music fans to experience the purest music play in any way they want," said Van Toffler, president of MTV Networks' music and logo group.

Rhapsody America, jointly owned by MTV and RealNetworks, will be the exclusive digital music service for Real and for MTV Networks' premier music and pop culture brands in the United States.

The new-look Rhapsody will combine RealNetworks' existing subscription-oriented service with Verizon's V CAST mobile music offering. "[W]e'll make Rhapsody the premier digital music service that delivers great music to millions of consumers whenever and wherever they want," said Rob Glaser, chairman and CEO of RealNetworks.

Users of MTV's URGE music service can immediately use their login details with the new Rhapsody, while Rhapsody customers can access MTV, VH1 and CMT content. It will take a few months for V CAST integration to be completed, but when that happens any songs purchased over the air will be automatically added to the user's Rhapsody account, and Rhapsody subscription music will be transferable to a mobile phone.

"Together, our three companies will provide a new, unbeatable digital music experience that will give every consumer a way to get music quickly and easily, whether sitting in front of a computer screen or on-the-go with a mobile device," said John Stratton, executive vice president and chief marketing officer at Verizon.

The MTV link will put the new service in the faces of younger music fans. It will feature on MTV, VH1 and CMT, and in next month's Video Music Awards ceremony. When the new service is available on mobile phones it will be marketed through Verizon Wireless's store network.

Have the partners got what it takes to put pressure on Apple? The MTV connection has to be a plus, but if that was all it took the company would be crowing about the market penetration of URGE rather than merely describing it as "critically acclaimed".

Subscriptions? So far, Steve Jobs insistence that people want to own their music has paid off.

Deep relationships within the consumer electronics industry? Apple's iPod is still the device to beat, despite any number of mooted 'iPod killers'.

Over the air purchases? That's currently Apple's weak spot. Users must purchase their music online and transfer it from a computer to an iPhone or other AAC-compatible phone. Rhapsody's two-way link would be a plus for those who listen to music on their phones and other devices.