Wednesday, March 19, 2008

Let The Battle Of The Digital-Music Providers Begin

Rhapsody America, a digital-music service from MTV Networks and RealNetworks, has been quietly working for its first major marketing activity.

Rhapsody, which wants to challenge iTunes' dominance in the digital-music marketplace recently re-branded with an investment from MTV Networks. At the time, MTV pledged to invest about $230 million over five years to market the service. Rhapsody have also struck a deal with Yahoo in which the latter would drop its subscription-music service and use its online audience to promote Rhapsody. Furthermore, Rhapsody also has a deal in place with US mobile carrier Verizon to extend its service to cellphones.

The challenger will be a subscription-based music service where users pay a monthly subscription fee for unlimited music downloads.