MTV, Real and Verizon join forces to tackle iTunes

MTV, RealNetworks and Verizon Wireless have joined forces in an attempt to dethrone Apple's iTunes service.

Under the terms of the agreement MTV, which is owned by Viacom, will merge its Urge digital music store with RealNetworks' Rhapsody music subscription service to form a new venture called Rhapsody America.

The second part of the deal will allow Verizon Wireless customers to access this new platform to download songs to mobile phones or PCs via the V Cast Music service.

Analysts have praised the collaboration, but do not believe that Apple has too much to worry about at this stage.

"We have long expected to see some consolidation in the second tier of the digital music market," said Jonathan Arber, senior analyst at Ovum.

"There are simply too many players competing for too small a slice of pie, and we would not be surprised to see more deals of this type.

"However, we very much doubt that this is a serious threat to iTunes. The subscription model has thus far proven unpopular with consumers, and there are no indicators that this new service will change that.

"In addition, the music offered by the service will not be playable on iPods, which is likely to severely limit its appeal at this time."

Promotion of the new service is set to begin during MTV's Video Music Awards in Las Vegas on 9 September, but as yet there is no official launch date for the combined platform.