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Internet and Media, International, Internet

Rhapsody Has an Epiphany: Apple's iPod


Apple's dominance of the online music scene has created a change in direction from the competition. Rhapsody, jointly owned by Real Networks and Viacom's MTV Networks is getting on the iTune bandwagon in a clear case of 'if you can't bet them, well you may as well join them.'

Rhapsody will now compete directly with Apple's iTune sales as their downloads will now be compatible with the popular iPod player. Rhapsody will also become the back-end music store for all the MTV related music sites as well as standard on Facebook's iLike.

Apple's iTunes has become the industry standard with a 70 percent market share in the US recently announcing it's 5 billionth download since launching in 2003. The company's success has been attributed because of the integration between the iTunes download and the ubiquitous iPod.

Even with other providers announcing online stores, Napster last month, and Wal-Mart and Amazon last year, Apple still clearly leads the way, and now with four of the major labels, Universal, Sony BMG, EMI and Warner Music dropping the Digital Rights Management battle the victory goes to Apple.

As to whether Rhapsody can leverage the Facebook and MTV channels through marketing remains to be seen, then of course there is always the lowering the price, that always seems to have an impact.