MTV, Real, and Verizon to take on iTunes with new music initiative

MTV, Real, and Verizon Wireless have 'formed Voltron' in an effort to take on the iTunes behemoth.

(Credit: TV Tokyo)

With their new joint digital music initiative, MTV Networks, RealNetworks and Verizon Wireless are taking a direct aim at Apple's iTunes powerhouse.

Called Rhapsody America, the yet-to-launch collaboration among the three companies will combine MTV's relatively unsuccessful Urge music store, the Real-owned Rhapsody subscription download service, and Verizon's V Cast mobile media service to create a music store that reaches across the PC, digital music player, and mobile phone platforms.

The new Rhapsody America company is officially a joint venture between MTV Networks and Real Networks, with Verizon Wireless as its exclusive mobile partner. Urge as a brand will cease to exist, with Rhapsody becoming the service of choice for MTV Networks' MTV, VH1, and CMT music brands. Michael Bloom, general manager of MTV's Urge, has been appointed head of the new company, and the company's offices will be located in New York, San Francisco and Seattle.

Urge had been launched as a music store in conjunction with MTV Networks' music brands, but its highly publicized deal with Microsoft had fallen by the wayside as the software company launched its Zune music player and accompanying music store.

Executives from MTV, Real, and Verizon held a joint conference call on Tuesday morning, filled with talk of "alliances" and "joining forces" that evoked superhero Captain Planet or Voltron. "The collaboration of these three companies is like a perfect storm," said Van Toffler, president of MTV Networks' Music/Logo/Films group, who added that they're striving to make Rhapsody America "the best service out there, hands-down."

"The notion of combining with these two marketing behemoths is very, very exciting from our standpoint," said Rob Glaser, chairman and CEO of RealNetworks. "This is a relationship that we spent a long time putting together." RealNetworks, which holds the larger stake in Rhapsody America, has been trying to expand its footprint in the music sales world for some time now through high-profile partnerships.

Few details about the revamped Rhapsody were actually disclosed--pricing, for example, or details regarding finances--but the executives hinted that Rhapsody tie-ins will start to appear as part of the MTV Video Music Awards, which will be broadcast from Las Vegas on September 9.

The executives from all three companies talked up the Verizon deal as crucial to the nature of Rhapsody America. "Our audiences have made it crystal clear that they really want their music accessible wherever they might be," Toffler said. Glaser added that over-the-air downloads through V Cast epitomize Real's goal of a "jukebox in the sky," which he said has been the company's aim since it launched the first RealPlayer in 1995.

More importantly, it's a potential arsenal in the fight to catch up with Apple's iTunes store, the inarguable leader in the digital music sales industry: iTunes offers no mobile download capabilities. John Stratton, Verizon's executive vice president and chief marketing officer, reminded those listening to the conference call that V Cast mobile phones now support 4GB of storage and will support eight by the end of the year--an underhanded nod to the storage capacity of Apple's own iPhone.

The formation of Rhapsody America is the latest move in a music industry trend to prime new strategies for an assault on iTunes. Most recently, Universal Music Group announced that it would not be renewing its contract with Apple's music store and that it would be making portions of its catalog available without digital rights management protection to a number of non-iTunes outlets, one of which is Rhapsody.

[KinkyKnina]

Annoyed

I was never a fan of Real products until Rhapsody. Then in typical Real form they release a horrible version upgrade. Not only could I not rollback, but the music guide & library couldn't agree on whether or not I had to pay extra for a song just to put it on my Iriver even though I was a Rhap-to-go subscriber. Most of library became useless overnight & there was no fix in sight.
As an IT professional the last thing I resort to is dealing with company support. However, I tried to play nice, follow the instructions, etc. After getting a few emails telling me exactly what the website faqs did, dealing with several Indians all named Shawn (I swear, every one of them) I canceled my Rhapsody subscription for the far more functional MTV Urge. It integrates with WMP11, has no problems transferring to my portable & doesn't give me crappy upgrades every other week.

If I wanted to deal with Real I would. I don't. So here is to hoping I don't have to go back to Rhapsody against my will.

[M C]

Alternate title: MTV Declares Urge a Failure

Hee, hee.

[Galaxy5]

Why does this remind me of the Iraq War?

This time, it'll REALLY work.

Face it - most people don't want to pay for music by subscription.
And most people identify Real with painfully naggy subscription
software.

Apple's proven time and time again that they know how to get it
right when it comes to digital music.

[DemiHampster]

Yawn

I wish c/net would refrain from releasing stories on iTunes
Killers!!! and iPod Conqueres and the like untill these alliances
actually do something significant. It all starts to sound like the
yapping of annoying little poodles.

[Llib Setag]

Urge : 0 Zune : 0

Isn't this REALLY a slap in the face of Microsoft?
MS + MTV = URGE, but NOW MTV says URGE has got to go & REAL is the real solution for them?

MS Zune & their ZunieTunes Store left MTV holding the bag, but Zunes have bombed big time...

This is definately a last ditch effort to attack Apple's iPod, iTunes, iTunes Music Store & iPhone in one fell swoop...good luck with that.

Verizon had their chance with the iPhone & turned it down...

Is it just me or did you think that REAL was out of business?
LOL!

[Macbrewer]

All are losers--this will not change

MTV doesn't even have MUSIC on it's TV channel anynmore. It's
the WORST thing on TV. I'd rather watch the shopping network.
Do RAPers even buy music? MTV makes me SICK. Where is the
MUSIC they talk about? What about rock and roll? Video hasn't
killed the radio (er iPod) star...

Real is the worst media format available.

Verizon? They have spotty network coverage, despite the
commercials. I can't hear you now. Please fix your network.
And, you PASSED on the iPhone? How daft is THAT?

Why would anyone buy music from these losers, or Wal-Mart or
Universal Music?

iTunes has the best service, iPod is the only decent player.

[R. U. Sirius]

Gimme a Break

MTV, Real, and Verizon. The three stooges of music sales are the iTunes killer?

I have a Verizon phone and an iPod. Guess which one I buy music for?

[wayne95125]

What a joke!

This is a nothing more than a Syndicate of Losers. Why the heck is
this news? I have yet to meet anyone that actually uses or likes
Vcast. I stopped putting real products on my PC years ago, and
MTV seems to be more focused on reality shows than music.

This is truly a consortium of failures!

[Macbrewer]

I would like to know when the REAL Microsoft Media Players..

... that is C/NET and ZDNET are going to quit hyping everyting
as an "iTunes KILLER'.

This is getting to the sublimely ridiculous level of the old 'KILLER
WEED' propaganda.

Haven't you boys had enough time to buy up all the Apple stock
you can afford? Time to quit dissing them and let it go on up
past Google in valuation. The time to sell your MSFT is now,
while it's still worth something.

Really. MTV is going to do in Apple? MTV and what army?