RealNetworks is making a play to directly challenge iTunes' 99-cent-per-song dominance on the iPhone. The company has submitted an app to allow the use of its Rhapsody subscription music service to Apple and are now awaiting approval.
Intended for availability as a free download, the app offers iPhone users music streaming on their handsets. That means all the songs you want at a fixed monthly price of $15 a month - a tempting offer that can potentially affect iTunes sales. Given all the heat that Apple is now getting for the App Store's approval process, Rhapsody for iPhone becomes an interesting case study as to how the company will handle potential competition looking to enter their smartphone platform.
Existing Rhapsody subscribers who are on $13/month accounts won't get in on the action, as iPhone support will only be available for the new $15 To Go package. Regardless, a library of over 8 million songs you can stream to your iPhone makes a good case for paying that extra $2, as well as attracting new subscribers.
According to Rhapsody, offline playback of songs is not currently available for the first version of the app, but will be added shortly thereafter. Streaming will be supported over all types of internet connection, including Wi-Fi, 3G and EDGE.
Whether Rhapsody gets approved or not will likely determine the eventual fate for Spotify, as well, who are now in the process of readying their own iPhone app. According to RealNetworks, the Rhapsody service will also be coming soon to other mobile platforms, including Android and Windows Mobile.
[via PC World]


So finally Rhapsody for the iphone. $15 subscription seems to be good considering the huge library.
[...] of the issue with Spotify (along with similar services like Rhapsody, who also has an app undergoing approval) has been centered along the level of threat it represents to iTunes, Apple’s own music download [...]
[...] of the issue with Spotify (along with similar services like Rhapsody, who also has an app undergoing approval) has been centered along the level of threat it represents to iTunes, Apple’s own music [...]
I’ve been really waiting for this! $15 subscription for a huge library is really a great deal. This will surely hurt itunes in a way.
Great news! I think a lot of people have been waiting for this. $15 monthly for unlimited music is totally worth it. I just hope it gets approved.